Lloyd’s reports £3.9bn profit at Half Year 2023

07 Sep 2023

Gross written premium of £29.3bn (HY 2022: £24.0bn)
Underwriting profit of £2.5bn (HY 2022: £1.2bn)
Combined ratio of 85.2% (HY 2022: 91.4%)
Net investment return of £1.8bn (HY 2022: loss of £3.1bn)
Profit before tax of £3.9bn (HY 2022: loss of £1.8bn)
Total capital of £40.8bn (FY 2022: £40.2bn)
Central solvency ratio of 438% (FY 2022: 412%)
Market-wide solvency ratio of 194% (FY 2022: 181%)

Lloyd’s, the world’s leading marketplace for insurance and reinsurance, today announced a strong set of results for the first six months of 2023, with an underwriting profit of £2.5bn (HY 2022: £1.2bn), an investment return of £1.8bn (HY 2022: £3.1bn loss) and a profit before tax of £3.9bn (HY 2022: loss of £1.8bn).

The market’s combined ratio improved 6.2 percentage points to 85.2% (HY 2022: 91.4%) demonstrating continued progress in underwriting performance.

Lloyd’s continued to support profitable underwriting growth, with gross written premium increasing 21.9% to £29.3bn driven by growth from existing syndicates (6.5%), new syndicates (2.2%), foreign currency movements (4.1%) and risk-adjusted rate increases (9.1%). Major claims represented 3.6% of losses in the first half of the year.

Lloyd’s balance sheet continued to strengthen with a central solvency ratio of 438% and market-wide solvency ratio of 194%, showing the market’s capital discipline and resilience through a range of market conditions.

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"

John Neal, Lloyd’s CEO

Notes to editors

1. For further detail on any forward-looking statements please refer to the 2023 Half Year Results.

2. A combined ratio is a measure of an insurer’s underwriting profitability based on the ratio of net incurred claims plus net operating expenses to net earned premiums. A combined ratio of 100% is break even (before taking into account investment returns). A ratio less than 100% is an underwriting profit.

3. Total capital includes capital, reserves and subordinated loan notes as reported in the Pro Forma Balance Sheet.

4. Lloyd’s strong financial strength ratings are A+ (Strong) stable outlook with Standard & Poor’s, A (Excellent) positive outlook with A.M. Best, AA- (Very Strong) stable outlook with Fitch Ratings and AA- (Very Strong) stable outlook with Kroll Bond Rating Agency.

5. Members’ resources operate on a several basis and are only available to meet each member’s share of claims. Central assets are available at the Council’s discretion to meet the liabilities of any member on a mutual basis.

6. Foreign exchange rates may materially fluctuate from the rates prevailing at 30 June 2023 (GBP1 = USD1.27, EUR1.17). Premiums, claims and investment income are translated at the average exchange rate for the period to 30 June 2023 (GBP1 = USD1.23, EUR1.14).

7. More news and information available from Lloyds.com

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