September 9. The specialist Lloyd’s insurance and reinsurance market has reported profit of £1.4 billion for the first-half of 2021, as the marketplace returned to underwriting profitability with an improved combined ratio of 92.2%.
The overall result at Lloyd’s has improved significantly from the net loss of £400 million reported for the same period in 2020, when the market recorded COVID-19 claims of £2.4 billion and a combined ratio of 110.4%.
Year-on-year, the combined ratio has strengthened by 18.2 percentage points from the 110.4% reported at H1 2020, or by 4.8 percentage points excluding COVID-19 from the 97% for FY 2020, which Lloyd’s says demonstrates the substantial turnaround of its profitability and performance.
The lower combined ratio for H1 2021 is the result of a notable reduction in the attritional loss ratio from 52.6% to 50.5%, and an improved expense ratio of 35.8%, against 37.7% a year earlier.
John Neal, Lloyd’s Chief Executive Officer (CEO), said: “In an uncertain world Lloyd’s remains acutely focused on supporting our customers when they need us, and in the first half of 2021 we have paid out nearly £10bn in claims to help the recovery of businesses and economies globally.
For H1 2021, Lloyd’s has announced net investment income of £600 million and a return of 0.8%, compared with income of £900 million and a return of 1.2% a year earlier.
Source: Reinsurance News