Interim profits surge at Lloyd's of London

Lloyd’s of London swung back into the black in the first half of the year, the historic marketplace confirmed on Thursday, boosted by strong demand and higher investment returns.

The 335-year old insurance and reinsurance specialist reported gross underwriting profits of £2.5bn in the six months to June end, up from £1.2bn a year earlier.

Gross written premiums rose 22% to £29.3bn, while the combined ratio – a key measure of an underwriter’s profitability – improved to 85.2% from 91.4%. The combined ratio measures claims and costs as a proportion of premiums, with anything below 100% an underwriting profit.

Lloyd’s also reported an improved investment return, rising to £1.8bn from last year’s £3.1bn loss.

Overall, pre-tax profits came in at £3.9bn. Lloyd’s made a £1.8bn loss in the first half of 2022.

John Neal, chief executive, said Lloyd’s had “a leading combined ratio, strong premium growth and a bulletproof balance 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 leadershi8p from climate transition to culture change, these results set us up to deliver on our positive financial outlook for 2023.”

Major claims represented 3.6% of losses during the first half.