Showing posts with label Lloyd’s. Show all posts
Showing posts with label Lloyd’s. Show all posts

Thursday, 19 September 2019

Lloyd’s records £2.3bn profit for the first six months of 2019

Lloyd’s today announced a pre-tax profit of £2.3bn for the first six months of 2019 with the publication of its interim results.
The key figures reported in Lloyd’s 2019 Interim Report are:
  • Aggregated market profit of £2.3bn (June 2018: £0.6bn)
  • Gross written premiums of £19.7bn (June 2018: £19.3bn)
  • Net investment income of £2.3bn, 3.2% return (June 2018: £0.2bn, 0.3% return)
  • Combined ratio of 98.8% (June 2018: 95.5%)
  • Net resources of £32.4bn (December 2018: £28.2bn)
  • Central solvency ratio of 266% (December 2018: 249%)
Lloyd’s profit before tax for the period was £2.3bn (June 2018: £0.6bn), underpinned by a combined ratio of 98.8% (June 2018: 95.5%) and investment income of £2.3bn (June 2018: £0.2bn), as the market benefitted from unrealised gains due to reducing US and UK bond yields as well as robust returns from equities in the first six months of 2019.
 The quality of Lloyd’s balance sheet remains exceptionally strong, with net resources growing to £32.4bn (December 2018: £28.2bn) and the central solvency coverage ratio increasing to 266% (December 2018: 249%). The financial strength of the Lloyd’s market was underscored by the recent affirmations of Lloyd’s ratings by Standard & Poor’s (A+ Strong), AM Best (A Excellent) and Fitch (AA- Very Strong).
 Gross written premiums for the period to June 2019 were £19.7bn, representing a 1.8% increase over the same period in 2018. However, the elimination of foreign exchange rate movements and growth from new syndicates points to a like-for-like year-on-year reduction in premiums of 2.6%. This is the net impact of a 6.5% reduction in business volumes as underwriters adjusted their books to improve performance and average risk adjusted rate increases of 3.9%. The Lloyd’s market also saw a reduction in the attritional loss ratio for the current underwriting year (2019) when compared to the 2018 underwriting year at the same point in time. Taken together, these changes reflect the strengthened underwriting discipline being applied in 2019.
 Lloyd’s operating expense ratio has seen a 1.2% reduction in the period, from 39.3% in 2018 to 38.1% in 2019. Lower administrative expenses, reflecting the continued effort by the market to manage its controllable costs, contributed a 1.5% reduction whilst there was a small increase, 0.3%, in the acquisition cost ratio from changes in the mix of business.
 John Neal, Lloyd’s Chief Executive Officer, said: 
 “We are pleased to report a profit during the first six months of 2019. It is encouraging that the Lloyd’s market is showing increased discipline in 2019 as evidenced by a reduction in gross written premiums and an improvement in the attritional loss ratio for the current underwriting year. However, we recognise the importance of continued focus on performance management to maintain this momentum throughout the rest of 2019 and beyond. “At the same time as ensuring that our market can deliver sustainable, profitable growth, we need to make some brave choices on how to meet the expectations of our customers and all our stakeholders in the future. The Future at Lloyd’s strategy will ensure that our marketplace is ready for these challenges and opportunities ahead of us, with the first blueprint to be published on 30 September. “Lloyd’s has also not hesitated to put in place a robust set of actions to tackle unacceptable behaviour around the market and ensure that we set the tone for a culture that encourages the brightest minds to remain in and join our industry. The centrepiece of these actions is the Lloyd’s market-wide culture survey which has built the most comprehensive picture ever commissioned of the culture across the insurance industry. We will be announcing the results of that survey and the actions that we will be taking at the Dive In Festival on 24 September."

Monday, 2 July 2018

Lloyd’s CEO Inga Beale to leave in 2019

Lloyd’s  (Fri 29 Jun 2018) announced that Chief Executive Officer, Dame Inga Beale, will step down next year after leading the global insurance and reinsurance market for five years.
Inga joined Lloyd’s in January 2014. Since then, her commitment to transformation across the market, and within the Corporation, has led to significant cultural change and the adoption of new technology that has accelerated the market’s modernisation and digitalisation.
Meanwhile, the Inclusion@Lloyd’s initiative, which Inga founded in 2013 and is celebrated via the annual Dive In festival, has embedded diversity and inclusion as a business imperative across the global insurance sector.
Inga will leave Lloyd’s with a strengthened reputation as one of the most respected and trusted insurance brands in the world, with a strong and experienced leadership team focused on delivering Lloyd’s strategic priorities.
Inga Beale, Chief Executive Officer at Lloyd’s, said:
“The decision to leave has been a tough one and when the time comes I will miss the energy, innovative spirit and expertise that I come across every working day. Leading Lloyd’s is an honour and I am proud to have played a part in ensuring that it remains relevant and fit for purpose for the future. The world trusts Lloyd’s to be there when it matters the most and I believe it is well placed for the next 330 years.”
Bruce Carnegie-Brown, Chairman at Lloyd’s, said:
“In her five years at Lloyd’s, Inga has set in motion a series of changes aimed at modernising the market and making it more efficient and inclusive. Her boldness and persistence have generated the momentum required to bring about real change. I have very much enjoyed working with Inga, and I am grateful for the support she has given me in my first year as Chairman.”
Inga’s leaving date will be confirmed in due course.