Lloyd's 2023 Results: Market Returns to a £10.7bn Profit Before Tax

According to the Lloyd's results announcement, both underwriting and investments contributed to the turnaround. The underwriting profit more than doubled to £5.9bn from £2.6bn, while the investment return was £5.3bn, against a loss of £3.1bn the previous year.

Underwriting performance

The underlying combined ratio, which excludes major claims, was 80.5% compared with 79.2% in 2022, and the attritional loss ratio was 48.3%, against 48.4%. The gap between the headline and underlying figures reflects lighter major claims: Lloyd's said underwriting benefited from lower costs from large risk losses and natural catastrophe claims during the year.

Capital strength

Solvency improved across the market. The central solvency ratio rose to 503% from 412%, and the market-wide solvency ratio increased to 207% from 181%, according to the full year results materials. Higher solvency ratios mean the market holds more capital relative to its requirements, which matters to policyholders relying on Lloyd's security.

What it means for policyholders and brokers

For corporate buyers and brokers placing risks in the London market, the Lloyd's 2023 results point to a market with strengthened capital and improved underwriting margins after several difficult years. The swing in the investment result, from a £3.1bn loss in 2022 to a £5.3bn return in 2023, also shows how much the market's overall outcome now depends on investment performance as well as underwriting.

Taken together, the figures show a market that wrote more business at better margins in 2023 while also benefiting from higher investment income. They are aggregate results for the Lloyd's market as a whole. Policyholders and brokers assessing a particular placement will still look at the performance of the syndicates writing the risk alongside the market-wide Lloyd's 2023 results.

Sources

• Lloyd's: Lloyd's reports outstanding performance in 2023 results
• Lloyd's: Full year results 2023