Lloyd’s, the world’s specialist market for insurance and reinsurance, today announced a profit of £2.1bn for 2015. The results demonstrate Lloyd’s continuing financial strength and sound market-wide performance despite a turbulent macro-economic backdrop.
•Pre-tax profit of £2.1bn (2014: £3.0bn).
•Return on capital of 9.1% (2014: 14.1%).
•Combined ratio of 90.0% (2014: 88.4%).
•Gross written premiums increase 6% to £26.7bn (2014: £25.3bn).
•Profits remain significant despite fall in investment returns and pressure on prices.
•Increasing financial strength demonstrates prudential resiliency
Lloyd’s ratings of A (excellent) by A.M. Best, AA- (very strong) by Fitch and A+ (strong) by Standard & Poor’s reflect its robust position. Lloyd’s competitive position on a global scale is driven by solid underwriting performance and diversity of global markets and product.
The approval of Lloyd’s internal model, a crucial step in securing the ability to operate within the new Solvency II regulatory regime was also a major achievement for the market.
Speaking about the results, Lloyd’s Chairman, John Nelson, said:
“The Lloyd’s market has shown its ingenuity and excellence once again, which is reflected by healthy profits in the midst of a challenging macro-economic climate.
“Each year brings a unique set of challenges, requiring determination, innovative thinking and solutions. This year has been no different. In a market undeniably tougher than seen for many years, we have had to demonstrate our ability to adapt and take action. In these conditions, these results are creditable and a tribute to the continued skill and professionalism of the Lloyd’s market underwriting community.”
Lloyd’s Chief Executive, Inga Beale, said:
“Lloyd’s is pursuing its strategy to deliver risk solutions to a fast moving world, business looks to the Lloyd’s market to underwrite policies too complex for others to handle. Protection from cyber-attacks, terrorism and climate change are needed now more than ever.”