Interim Results

The Lloyd’s Market reported a pre-tax profit of £1,432m (2020 H1 loss £438m) on a combined ratio of 92.2% (2020 H1 110.4%) for H1 2021, a profit of 8.3% (H1 2020 -2.6% loss) on average capital on an annualised basis.

Total major losses for H1 were £0.8bn, 6.8% of Net Premium Earned (NPE) (H1 20: 20.6% NPE including COVID-19, 1.9% NPE excluding COVID-19). Total expenses reduced by 1.3 percentage points but remain elevated at 38% NPE. Investment returns were reduced at 5.1% NPE (H1 2020 7.5%).

Lloyd’s overall profit of 11.6% NPE for H1 2021 compares to a loss of 3.5% NPE for H1 2020, the latter affected by the exceptional losses due to COVID-19 (18.7% NPE).

2020 Syndicate Results

Syndicate annual results excluding non-technical returns (primarily investment returns on Funds at Lloyd’s deposited at the syndicate level), ranged from a profit of 95% NPE (Net Premium Earned) to a loss of 189% NPE for those syndicates trading in 2020, excluding RITC syndicates and “Syndicate-In-A-Box” start-ups.

The overall market weighted average technical loss for syndicates trading in 2020 (excluding RITC syndicates) was 7.4% of NPE.

The weighted average overall technical results by quartile were:
Top quartile                  +11.6% NPE
Second quartile            -2.5% NPE
Third quartile                -11.2% NPE
Fourth quartile              -36.5% NPE

The overall technical loss for the bottom quartile of syndicates, representing 16% of total NPE, accounted for 77% of the market’s loss.

 

Independent and Experienced in Lloyd’s Syndicate Research

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 71% of the market’s capacity, with quantitative Scorecard Indicators assigned to syndicates representing c.93% 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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