Lloyd's expects to pay GBP 5 billion for COVID-19 customer claims

10 September 2020 — press.release
Lloyd's confirmed it expects to pay out up to GBP 5 billion in COVID-19 customer claims on a gross basis, with the publication of its 2020 Half Year Results.

In the first six months of 2020, Lloyd's COVID-19 claims after reinsurance recoveries totalled GBP 2.4 billion, contributing 18.7% to the market's combined ratio of 110.4% and driving an overall market loss of GBP0.4bn.

Excluding COVID-19 claims, the market's combined ratio has shown substantial improvement at 91.7%, down from 98.8% in H1 2019. This is supported by a 7.1 percentage point improvement in the attritional loss ratio which has dropped to 52.6%.

Lloyd's strong capital and solvency position ensures it can withstand the ongoing impacts of COVID-19. The market's net resources increased by 7.2% to GBP 32.8 billion as at 30 June 2020, reinforcing the exceptional strength of Lloyd's balance sheet and a central solvency ratio of 250%, which is expected to be at 200% for the second half of the year.

John Neal, Lloyd's CEO, said:

"The first half of 2020 has been an exceptionally challenging period for our people, our customers, and for economies around the world. The pandemic has inflicted catastrophic societal and economic damage calling for unparalleled measures to stifle the spread of the virus, and to get businesses and economies back on their feet. Our half year results demonstrate that our robust approach to performance management and remediation has begun to take effect, evidenced by a significant turnaround in the underlying performance metrics, which give the truest indication of our market's profitability."

Source: lloyds.com

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