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

AXA: acquisition of XL Group completed

AXA has announced on September 12 that it has completed the acquisition of XL Group Ltd, a leading global Property & Casualty commercial lines insurer and reinsurer with strong presence in North America, Lloyd's, Europe, and Asia-Pacific.


QBE's received approval to move its European business to Brussels

QBE European Operations, the business insurance specialist, part of the Australian QBE Insurance Group, has received the High Court approval for moving its general insurance business written through its European branch network to QBE's new Belgian (re)insurance entity, QBE Europe SA/NV.





LIVE: 1st National Reinsurers Summit in Moscow: focus on global cooperation

Today has started in Moscow the 1st National Reinsurers Summit "National Reinsurers: Focus on global cooperation". Organized by the Russian National Reinsurance Company (RNRC) with the support of the Central Bank of the Russian Federation, the conference has the insurance portal as Media Partner.



LIVE from Monte Carlo: The 62nd edition of the "Rendez-Vous de Septembre"

The 62nd edition of the "Rendez-Vous de Septembre", the annual traditional meeting of reinsurers starts Sunday in Monte Carlo. XPRIMM Publications covering the CEE, SEE and CIS insurance markets are available at the XPRIMM stand in Fairmont Hotel, as well as at the most important venues in Monte Carlo.


Willis Re - Market still soft, but functional

Despite the high losses from 2017 the reinsurance market is still soft, James KENT, Global Chief Executive Officer (CEO) of Willis Re stated at a press briefing in Monte Carlo.


See all