Lloyd’s Interim Results H1 2020

The Lloyd’s Market has reported a pre-tax loss of £438m on a combined ratio of 110.4% (H1 2019 98.8%) for H1 2020, a loss of 2.8% (H1 2019 profit of 15.3%) on average capital on an annualised basis.

Total major losses for H1 were £2.6bn, 20.6% of Net Premium Earned (NPE), of which £2.4bn net, 18.7% of NPE were from COVID-19. Excluding COVID-19 major losses were 1.9% of NPE (H1 2019 1.4%).Full-year expected losses for COVID-19 are £5bn gross and £3bn net, or 11.7% of trailing 12 months NPE, in line with previously announced estimated losses of £2.5bn to £3.5bn net.

The accident year loss ratio excluding major claims improved significantly to 52.7% NPE (2019 59.7% NPE). Prior year releases were similar at 0.5% NPE (H1 2019 0.4%). Investment returns were materially reduced at 7.5% of Net Premium Earned (NPE) (H1 2019 18.2%), relative to the exceptional returns of 2019.

Lloyd’s overall loss of 3.5% NPE for H1 2020 compares to a profit of 18.3% NPE for H1 2019, the latter underpinned by the exceptional investment returns of 2019.

Press Release – Syndicate 5000

London 4th September 2020:  SRL today confirmed the B^ (Average) Continuity Opinion of Lloyd’s syndicate 5000 (Travelers Syndicate Management Limited) following the conclusion of a review for possible downgrade. The outlook for the Continuity Opinion has been changed to negative in light of the syndicate’s continuing underperformance relative to its Continuity Opinion peer group.

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Syndicate Research Limited (SRL) provides in-depth research, analysis and commentary on all trading syndicates operating in the Lloyd’s of London insurance market.

Syndicate Continuity Opinions (SCOs) – taking into account cross-cycle Returns on Capital and Group support – have been assigned to active syndicates representing some 72% of the market’s capacity, with quantitative Scorecard Indicators assigned to syndicates representing c.95% of the market’s capacity.

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