Lloyd’s of London swung to an aggregate profit of £1.4bn in H1 FY21, up from losses of £400m the previous year.
The (re)insurance market attributed the return to profitability mainly to a “substantially improved underwriting result” of £1bn during the six-month period.
Combined ratio at the market sat at a profit-making 92.2%, with an underlying combined ratio of 85.4%.
Despite the half-year to June 2021 generating £20.5bn in gross written premiums, John Neal, chief executive at Lloyd’s, recognised that there remained a number of underperforming underwriters on the market.
He told the Financial Times: “Even under the skin of this result, there are some people in the marketplace — thankfully a small number — that are not performing.
“They need to demonstrate to us that for 2022 they can get their businesses back in shape — or if they can’t, candidly, they shouldn’t be here.”
While Lloyd’s retains the power to dispel syndicates, Neal added that a new 2022 business plan is expected to be agreed in all but a “handful” of cases.
Insurance Wire has contacted Lloyd’s for further comment.