Business

Lloyd’s swings to £1.4bn H1 profit

The (re)insurance market attributed the return to profitability mainly to a ‘substantially improved underwriting result’ of £1bn during the six-month period

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.

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