Lloyd’s of London, one of the world’s largest insurance and reinsurance markets, reported a significant profit increase for the first half of 2024. The company posted a pre-tax profit of £4.9 billion, up from £3.9 billion in the same period last year. Gross written premiums rose to £30.6 billion from £29.3 billion in 2023.
Lloyd’s combined ratio, a key profitability metric, improved to 83.7%, down from 85.2%. A ratio below 100% indicates underwriting profitability. The company’s underwriting profit grew by £0.5 billion to £3.1 billion, supported by higher interest rates, which boosted investment returns to £2.1 billion. Its solvency ratio remained strong at 206%, slightly down from 207% at the end of 2023.
Lloyd’s CEO John Neal praised the results, attributing them to “disciplined underwriting, organic growth, and a solid balance sheet,” which benefit both investors and clients.
Lloyd’s has benefited from a “hard” insurance market, where premiums rise to offset inflation-driven claims. However, Chairman Bruce Carnegie-Brown noted that premium price hikes are slowing, with just 1.5% growth attributed to price increases. Despite this, volume rose by 5%, which is seen as positive for Lloyd’s and the broader London insurance market.
Carnegie-Brown acknowledged the market was “lucky” to avoid major catastrophes in the first half of the year but cautioned that the second half is traditionally more challenging. Lloyd’s is preparing for rising losses from natural disasters, as data from Verisk suggests annual insured losses from such events could average $151 billion.
Lloyd’s has been focusing on strengthening its balance sheet to withstand shocks but emphasized the need for collaboration with governments to enhance resilience. Carnegie-Brown highlighted the growing range of risks, from cyber to geopolitical, stressing that some risks, like pandemics, are too large for the insurance industry to bear alone.
On the digital transformation front, Lloyd’s has delayed the next phase of its Blueprint Two strategy, aimed at improving efficiency and cutting costs, to the first half of 2025 due to longer-than-expected testing. Despite the delays, Carnegie-Brown reaffirmed the market’s commitment to modernization, particularly in reducing errors and increasing efficiency through digital solutions.
In conclusion, Lloyd’s of London is navigating a shifting insurance landscape with strong financial results and strategic investments in digital transformation and risk management.Source link
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By Benjamin
Lloyd’s of London, one of the world’s largest insurance and reinsurance markets, reported a significant profit increase for the first half of 2024. The company posted a pre-tax profit of £4.9 billion, up from £3.9 billion in the same period last year. Gross written premiums rose to £30.6 billion from £29.3 billion in 2023.
Lloyd’s combined ratio, a key profitability metric, improved to 83.7%, down from 85.2%. A ratio below 100% indicates underwriting profitability. The company’s underwriting profit grew by £0.5 billion to £3.1 billion, supported by higher interest rates, which boosted investment returns to £2.1 billion. Its solvency ratio remained strong at 206%, slightly down from 207% at the end of 2023.
Lloyd’s CEO John Neal praised the results, attributing them to “disciplined underwriting, organic growth, and a solid balance sheet,” which benefit both investors and clients.
Lloyd’s has benefited from a “hard” insurance market, where premiums rise to offset inflation-driven claims. However, Chairman Bruce Carnegie-Brown noted that premium price hikes are slowing, with just 1.5% growth attributed to price increases. Despite this, volume rose by 5%, which is seen as positive for Lloyd’s and the broader London insurance market.
Carnegie-Brown acknowledged the market was “lucky” to avoid major catastrophes in the first half of the year but cautioned that the second half is traditionally more challenging. Lloyd’s is preparing for rising losses from natural disasters, as data from Verisk suggests annual insured losses from such events could average $151 billion.
Lloyd’s has been focusing on strengthening its balance sheet to withstand shocks but emphasized the need for collaboration with governments to enhance resilience. Carnegie-Brown highlighted the growing range of risks, from cyber to geopolitical, stressing that some risks, like pandemics, are too large for the insurance industry to bear alone.
On the digital transformation front, Lloyd’s has delayed the next phase of its Blueprint Two strategy, aimed at improving efficiency and cutting costs, to the first half of 2025 due to longer-than-expected testing. Despite the delays, Carnegie-Brown reaffirmed the market’s commitment to modernization, particularly in reducing errors and increasing efficiency through digital solutions.
In conclusion, Lloyd’s of London is navigating a shifting insurance landscape with strong financial results and strategic investments in digital transformation and risk management.
Source link