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.
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%, as compared to the H1 2022 ratio of 91.4%. Major claims represented 3.6% of the combined ratio in the first half of the year, down from 9.9%.
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%.
This was driven by growth from existing syndicates of 6.5%, new syndicates of 2.2%, foreign currency movements of 4.1% and risk-adjusted rate increases of 9.1%.
Lloyd’s total capital stands at £40.8 billion at H1 2023 compared with FY 2022 of £40.2 billion, and the firm’s central solvency ratio is 438% as compared to FY 2022 of 412%.
The current market-wide solvency ratio of Lloyd’s is 194% compared to FY 2022 of 181%, 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 very strong 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.”
