Lloyd's reports return to profit and estimates major claims from Ukraine war

29 March 2022 — Andrei Victor
Lloyd's of London announced a strong return to profitability in its FY 2021 results, with an overall profit of GBP 2.3 billion, vs. a loss of GBP 0.9 billion a year before, and a combined ratio of 93.5% (vs. 110.3% in 2020 or 97.0% excluding COVID-19) - the best quality result reported for six years.

Gross written premiums totaled GBP 39.2 billion (GBP 35.5 billion in 2020), while the value of paid claims to its customers totaled GBP 19.9 billion, of which GBP 2.9 billion to customers impacted by COVID-19 (86% of claims notified to date).

"The market's underwriting discipline will enable sustainable profitability in the years to come, coupled with a balance sheet that can support our ambition to grow profitably", said John NEAL, CEO, Lloyd's.

Lloyd's believes that the ongoing conflict in Ukraine will be a major claim to the market in 2022.

Business underwritten by the Lloyd's market in Ukraine, Russia and Belarus currently represents less than 1% of Lloyd's global footprint, thus "direct and indirect claims are expected to fall within manageable tolerances and will not create solvency challenges".

"As we announce these results today, our thoughts are first and foremost with the people of Ukraine. In a world buffeted by increasingly complex and connected risks - from the pandemic to a geopolitical conflict - the Lloyd's market is standing by its customers and supporting their recovery when things go wrong", said John NEAL.

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