The Lloyd’s of London insurance market delivered profits of almost £10 billion last year despite underwriters being battered by huge losses from catastrophes such as hurricanes Milton and Helene and the Baltimore Bridge disaster.
Results for last year show the Lime Street based City institution famed for its Richard Rogers designed “inside-out” building wrote premiums of £55.5 billion, up 6.5% from £52.1 billion.
Pre-tax profits fell 10% from £10.7 billion to £9.6 billion, still one of the most profitable years in the market’s 336 year history.
It was made up of an underwriting profit of £5.3 billion and an investment return of £4.9 billion boosted by higher interest rates.
The market, which is made up of more than 50 leading insurance companies and over 380 registered Lloyd’s brokers, made a return on capital of 21%.
While this was down on 2023’s bumper 25.3%, but it brought the seven year average up to 7.6%.
The major claims ratio rose to 7.8 per cent in 2024 more than double 2023’s 3.5%. mainly due to the two disastrous hurricanes and the Baltimore Bridge collision.
The Californian wildfires, which were not included in the 2024 results, are expected to result in a net loss to Lloyd’s of London of around £1.8 billion.
CEO John Neal said: “The Lloyd’s market has delivered another year of outstanding financial performance, with a superb combined ratio, underlying combined ratio and attritional loss ratio supporting a capital position and claims reserve strength that is as strong as it has ever been.
“Our market’s ability to continue to deliver sustainable and attractive returns for our investors, and provide the solutions customers need to protect their balance sheets and revenue streams, is underpinned by our relentless focus on sustainable, profitable performance – which will always be our number one priority.
“This is built on three distinct areas: strong and consistent financial performance; our relentless focus on underwriting discipline; and the benefits of global scale. “
Bruce Carnegie-Brown, Lloyd’s chairman,said: “Our market’s performance in 2024 underpins the important role we play in maintaining and strengthening the UK’s global position in wholesale and commercial insurance.”
