Context
Lloyd’s has posted a loss of £1.8bn for the first half of 2022 compared to a profit of £1.4bn in the same period last year, but has achieved an underwriting profit of £1.2bn.
Key points to note
- The £3.2bn swing was driven by a net investment loss of £3.1bn, but Lloyd’s believes that the market will begin to benefit from higher interest rates in 2023 resulting in improved investment returns.
- The underwriting profit is a £240m increase on the half-year position in 2021.
- The combined operating ratio was 91.4%, compared to 92.2% for H1 2021, which is the strongest COR since 2015 and represents a 0.8% improvement on last year. This is in the face of challenges in the form of natural catastrophes, the invasion of Ukraine, inflation and other geopolitical factors.
- Lloyd’s also benefitted from favourable trading conditions to achieve premium growth, with GWP increasing 17.4% to £24bn (HY 2021: £20.5bn) and Net Earned Premium (NEP) increasing by 14.4% to £14.1bn (HY 2021: £12.4bn).
- Continuing the trend of five consecutive years of positive rate movement, prices increased by 7.7%.
Next actions
None – for information and awareness.