After achieving its best interim combined ratio since 2007 in the first half of the year, Lloyd’s CEO, John Neal, has emphasised that this industry-leading performance has underpinned the firm’s ability to innovate and design the solutions its customers, businesses and governments need to manage their risks and balance sheets through increasing uncertainty.
“Coming into 2024, we knew the year would bring significant change – with over half the world’s population taking part in elections; persistently high interest rates and inflation; conflict in Europe and the Middle East; and beneath it all, the effects of a changing climate,” Neal said in a recent statement.
He continued, “At Lloyd’s, our focus in the first half of 2024 remained on supporting a profitable marketplace that delivers sustainable and attractive returns for our investors, at a time when Lloyd’s global insurance premiums are growing at more than twice the rate of GDP.”
In 2023, Lloyd’s achieved its best underwriting result in recent history, and the strong performance has continued into 2024 with the market today reporting a strong set of H1 results.
The world’s oldest insurance and reinsurance marketplace reported a 24%, or £600 million year-on-year rise in underwriting profit to £3.1 billion for the first half of 2024, as it produced its best interim combined ratio since 2007 of 83.7%.
Year-on-year, the combined ratio strengthened by 1.5 percentage points to the aforementioned 83.7%, while the underlying combined ratio, which excludes major claims, improved to 80.6% from 81.6% in H1 2023.
Lloyd’s explained that it continued to support sustainable profitable growth during the period, reporting a 6.5% year-on-year rise in gross written premium to £30.6 billion, excluding foreign exchange movements of -2.1%, driven by 5% volume growth and price increase of 1.5%.
Neal continued his statement, “Maintaining strong, sustainable, profitable performance is our top priority, and our industry-leading results for the first half of 2024 – built on more than six years of progressively more profitable underwriting – are a testament to that focus.
“The superb start to the year has ensured we are well positioned to respond to global change through the second half of the year and into 2025.”
He concluded, “This, coupled with our persistent focus on strategic execution, gives us the confidence that we have frameworks in place to continue to support sustainable, long-term profitability for our investors, and to respond to the needs of our market’s customers as they navigate increasing risk and uncertainty.
“Our ability to deliver strong and consistent financial performance, driven by underwriting discipline and the benefits of global scale, would not be possible without the combined commitment and efforts of our market members, brokers and partners around the world.
“Thank you for your continued support as we continue to deliver on our commitment to our customers, and build on the achievements and unique attributes that create the distinct investment proposition and opportunity in a growing Lloyd’s market.”
