Lloyd’s Full Year Results 2017

The Lloyd’s Market has reported a pre-tax loss of £2,001m on a combined ratio of 114.0% (2016 97.9%) for 2017, being a loss of 7% on average capital, offsetting the profit recorded for 2016 (8% capital) as expected (reference SRL’s Special Report ‘Hurricane Losses, Competitive Markets and Brexit Implications’ September 2017).

The results were significantly impacted by the Q3 2017 Hurricanes with Major Losses increasing to 19% of Net Premium Earned (NPE) (2016 9%). The attritional loss ratio also increased to 59% NPE (2016 53%); prior year releases reduced to 3% NPE (2016 5%). The losses were offset by investment returns of 7% NPE (2016 6%) and total expenses reducing to 40% NPE (2016 41%).

Lloyd’s overall loss of 8.2% NPE compares to a profit of 9.3% NPE in 2016.

2017 was an exceptional year in terms of loss incidence. However, SRL views the accident year combined ratio excluding major losses of 98% as reflective of more recent market conditions. The accident year combined ratio excluding major losses has to be placed in the context of reduced prior year releases and 10-year average major claims for Lloyd’s of 10% NPE.


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 73% of the market’s capacity, with quantitative Scorecard Indicators assigned to syndicates representing 92% 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.

Latest Research