LLOYD's market swings to heavy GBP 2 billion loss for 2017

The Lloyd's market has posted a GBP 2 billion pre-tax loss for 2017, a severe deterioration from the GBP 2.1 billion profit it reported this time last year as the venerable institution's combined ratio swelled to a hefty 114%.

Lime Street was heavily scarred by the catastrophe losses of last year, which hit syndicates with GBP 4.5 billion of claims and pushed the market to an overall underwriting loss of GBP 3.4 billion.

Property was the worst performer by line of business, posting a massive GBP 1.8 billion loss a marked deterioration from a loss of GBP 202 million in 2016. It also clocked a calendar year combined ratio of 127.6%, which includes around 3.9 points of reserve strengthening.

While the catastrophe losses of H2 undoubtedly left their mark on the segment, LLOYD's recognized that attritional losses had put results for the year under pressure even in the first six months of the 2017.

Of the market's trademark specialty lines marine suffered the worst year, with its losses swelling from GBP 129 million in 2016 to GBP 469 million as the combined ratio jumped 16.2 points to 122.4%.

Despite the challenging underwriting performance, soaring global markets pushed investment income up nearly GBP 500 million to GBP 1.8 billion for the year, while the market's top line rose from GBP 29.8 billion to GBP 33.6 billion.

Lloyd's CEO Inga BEALE named 2017 an "exceptionally difficult" year for the market, while chairman Bruce CARNEGIE-BROWN said the return of catastrophes had proved that benign conditions had been masking "tough trading conditions".

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

EUROHOLD increases share capital by BGN 80 million

Bulgaria-based Eurohold plans to increase its share capital by BGN 80 million through preferred shares, the new total reaching BGN 277 million. The capital growth will help the company to reduce its debt and support expansion plans.

2019-03-21

Sava Re's FY2018 net profit rises 38% y-o-y

The Sava Re Group ended 2018 with a net profit of EUR 43 million, delivering a 13.1% return on equity. In 2018, the Group's equity grew by 7.6% to EUR 340.2 million as of December 31, 2018. The Group's net technical provisions stood at EUR 1.1 billion.

2019-03-14

GENERALI Group results for year 2018

In 2018, GENERALI Group operating result reached EUR 4,857 million (+3.0%), with a net profit of EUR 2,309 mil. (+9.4%). The total gross written premiums (GWP) of the Group amounted EUR 66,691 mil. (+4.9%).

2019-03-14

MetLife announced leadership changes as part of CEO transition

MetLife announced a series of changes to its senior leadership ranks in connection with its CEO transition, all of which are effective May 1, 2019. In January 2019, the BoD announced that Michel KHALAF, President, U.S. Business and EMEA, will become MetLife's President, CEO and Member of the Board effective May 1, replacing Steven KANDARIAN, who is retiring.

2019-03-14

ON THE MOVE

Bulgaria: Boiko ATANASSOV appointed as FSC's head

The Parliament of the Republic of Bulgaria appointed Boiko ATANASSOV as Chairperson of the Financial Supervision Commission (FSC) on March 15, with 134 votes in favour, none opposed or abstained.

21.03.2019

TOP EVENT

Climate and cyber: two Cs with catastrophic potential and the insurance business - under debate in Vienna, on April 9

10 years after its inception, the Romanian mandatory dwelling insurance system has progressed and PAID, the pool underwriting and managing the mandatory policies is a strong and financially sound institution. "We are currently managing a reinsurance program worth EUR 920 million, with a pool of excellent reinsurers, more than half of them rated AA+, while the company's solvency rate is of 220%," recently stated Nicoleta RADU, CEO, PAID.

21.03.2019

Conclusions: TBILISI - the first Georgian International Insurance Conference

The first Georgian International Insurance Conference took place on 14 March 2019. The event put under scrutiny the current status and the future development perspectives of the local market, in an attempt of identifying the main growth opportunities. The forthcoming launch of the mandatory MTPL system was the most important topic on the agenda, as this new line of business has the potential to provide for a significant growth, but also to become a market disruptor.

14.03.2019

See all