REG - Lloyds Of London - Lloyd's HY24 Results

S&P GlobalAnnouncement

05/09/2024 08:15

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RNS Number : 0392D  Lloyds Of London  05 September 2024

 

Lloyd's reports £4.9bn profit, £30.6bn gross written premium and an 83.7%
combined ratio at Half Year results

 

Lloyd's, the world's leading marketplace for insurance and reinsurance, today
announced a strong set of results for the first six months of 2024, with an
overall profit before tax of £4.9bn (HY 2023: £3.9bn).

 

The market demonstrated continued discipline through H1 2024, delivering an
underwriting profit of £3.1bn (HY 2023: £2.5bn), a £0.6bn increase on the
previous year.

 

Lloyd's continued to support sustainable profitable growth, with gross written
premium increasing by 6.5% to £30.6bn (HY 2023: £29.3bn) excluding foreign
exchange movements (-2.1%), driven by volume growth (5.0%) and price increases
(1.5%).

 

The market's combined ratio improved year-on-year to 83.7% (HY 2023: 85.2%) -
its best interim result since 2007. The underlying combined ratio improved to
80.6% (HY 2023: 81.6%).

 

The investment return of £2.1bn (HY 2023: £1.8bn) was primarily driven by
strong fixed income returns complemented by high growth in equity markets.

 

The drive to improve performance and reduce the cost of doing business at
Lloyd's has resulted in a further 1.7% reduction in the attritional loss ratio
to 49.2% (HY 2023: 50.9%), and an improving expense ratio reducing to 34.5%
(HY 2023: 35.4%).

 

Lloyd's maintained a strong balance sheet with a central solvency ratio of
520% (FY 2023: 503%) and market-wide solvency ratio of 206% (FY 2023: 207%),
highlighting the market's capital discipline and resilience.

 

Lloyd's sustainable profitability and resilient capital position were
reflected in AM Best's upgrade of the financial strength of the Lloyd's market
to A+ (superior) from A (excellent) and the long term issuer credit rating to
AA- (superior) outlook stable from 'A+' (excellent); outlook positive.

 

Lloyd's CEO, John Neal said: "The first half of 2024 has presented a superb
set of results for the Lloyd's market which represents a combination of
disciplined underwriting, smart organic growth and real strength in the
Lloyd's balance sheet. This is good news for both investors in the Lloyd's
insurance marketplace and our customers as we continue to support them in an
increasingly risky world."

 

 

 

The key figures reported in Lloyd's 2024 Half Year results are:

·      Gross written premium of £30.6bn (HY 2023: £29.3bn)

·      Underwriting profit of £3.1bn (HY 2023: £2.5bn)

·      Combined ratio of 83.7% (HY 2023: 85.2%)

·      Underlying combined ratio of 80.6% (HY 2023: 81.6%)

·      Investment return of £2.1bn (HY 2023: £1.8bn)

·      Result before tax of £4.9bn (HY 2023: £3.9bn)

·      Total capital, reserves and subordinated loan notes of £43.5bn
(FY 2023: £45.3bn)

·      Central solvency ratio of 520% (FY 2023: 503%)

·      Market-wide solvency ratio of 206% (FY 2023: 207%)

 

ENDS

 

Notes to Editors:

·      A combined ratio is a measure of an insurer's underwriting
profitability based on the ratio of net incurred claims plus net operating
expenses to net earned premiums. A combined ratio of 100% is break even
(before taking into account investment returns). A ratio less than 100% is an
underwriting profit.

·      Underlying combined ratio is the combined ratio excluding major
claims.

·      Lloyd's ratings are AA- (Very Strong) stable outlook with S&P
Global, AA- (Superior) stable outlook with AM Best, AA- (Very Strong) stable
outlook with Fitch Ratings, AA- (Very Strong) stable outlook with Kroll Bond
Rating Agency (KBRA).

·      Foreign exchange rates may materially fluctuate from the rates
prevailing at 30 June 2024 (GBP1 = USD1.26, EUR1.18). Premiums, claims and
investment income are translated at the average exchange rate for the period
to 30 June 2024 (GBP1 = USD1.27, EUR1.17).

·      More news and information available from Lloyds.com.

 

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