The marketplace for re/insurance, Lloyd’s, has reported a strong set of results for H1 2023, with an underwriting profit of £2.5 billion, a significant increase from H1 2022’s £1.2 billion.
Reinsurance News reports the strong underwriting result was driven by relatively lower major claims in the period, as the combined ratio improved by 6.2 percentage points to 85.2 per cent, compared to the H1 2022 ratio of 91.4 per cent. Major claims represented 3.6 per cent of the combined ratio in the first half of the year, down from 9.9 per cent.
Lloyd’s saw an investment return of £1.8 billion, compared to H1 2022’s investment loss of £3.1 billion.
The better underwriting and investment performance saw profit before tax reach £3.9 billion, which again shows a significant increase from H1 2022’s loss of £1.8 billion.
In H1 2023, Lloyd’s saw an increase in gross written premium to £29.3 billion, compared year over year to £24 billion, reflecting growth of 21.9 per cent.
This was driven by growth from existing syndicates of 6.5 per cent, new syndicates of 2.2 per cent, foreign currency movements of 4.1 per cent and risk-adjusted rate increases of 9.1 per cent.
Lloyd’s total capital stands at £40.8 billion in H1 2023 compared with FY 2022 of £40.2 billion, and the firm’s central solvency ratio is 438 per cent as compared to FY 2022 of 412 per cent.
Lloyd’s current market-wide solvency ratio is 194 per cent compared to FY 2022 of 181 per cent, showing the market’s capital discipline and resilience through a range of market conditions.
John Neal, the Cheif Executive Officer of Lloyd’s, commented, “We’re pleased to be reporting a robust set of results for the year so far – with profitability in both our underwriting and investments; a leading combined ratio, strong premium growth and a bulletproof balance sheet that means we can support customers through a range of shocks and scenarios.
“Combined with the market’s progress in driving sustainable performance, digitalisation and showing leadership from climate transition to culture change – these results set us up to deliver on our positive financial outlook for 2023.”
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