Covid-19 Losses

The Lloyd’s Market has announced estimated losses related to Covid-19 of £2.5 to £3.5bn, equivalent to 10% to 14% of 2019 Net Premium Earned (NPE).

The estimated losses are based on syndicates’ submitted totals together with an estimated downside uncertainty range, assuming material social distancing rules and restrictions persist regionally and/or globally until 30 June 2020.

The losses from Covid-19 compare to the previously reported Lloyd’s 2019 combined ratio of 102%, including major losses of 7% NPE.

2019 Syndicate Results

Syndicate annual results excluding non-technical investment returns (investment returns on Funds at Lloyd’s deposited at the syndicate level), ranged from a profit of 84% NPE (Net Premium Earned) to a loss of 109% NPE for those syndicates trading in 2019, excluding RITC syndicates.

The overall market weighted average technical profit for syndicates trading in 2019 was 1.7% of NPE.

The weighted average technical results by quartile were:
Top quartile +12.0% NPE
Second quartile +4.6% NPE
Third quartile -2.1% NPE
Fourth quartile -21.9% NPE

Press Releases

LONDON, 30th June 2020 – Syndicate Research Limited (SRL) today downgraded the B+^ (Above Average), negative outlook, Continuity Opinion of Lloyd’s syndicate 1221 (Navigators Underwriting Agency Limited) to B^ (Average) in light of recent performance relative to its Continuity Opinion peer group and following the syndicate recording a material loss for 2019. The outlook for the Continuity Opinion remains negative.

LONDON, 30th June 2020 – Syndicate Research Limited (SRL) today affirmed the B+^ (Above Average) Continuity Opinion of Lloyd’s syndicate 3000 (Markel Syndicate Management Limited) after publication of its 2019 annual results. The outlook for the Continuity Opinion has been changed from stable to negative in light of reduced profitability in recent years and the expectation of reducing prior year releases and investment returns that have historically underpinned its results.

Independent and Experienced in Lloyd’s Research

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

Syndicate Continuity Opinions (SCOs) 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.

With a combined experience of the Lloyd’s market of over 50 years, our team produces research which is used by clients the world over.

We value our independence; we do not accept payment from the syndicates or managing agents for coverage of their businesses.

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