Following one of the costliest years for natural catastrophes in the past decade, Lloyd’s, the specialist insurance and reinsurance market, announced an aggregated market loss of $2.7 billion for 2017.
The key financial figures are:
- Aggregated market pre-tax loss of $2.7 billion (2016: Pre-tax profit of $2.6 billion)
- Gross written premiums of $43.3 billion (2016: $40.3 billion)
- Major claims for 2017 were $5.8 billion (2016: $2.8 billion)
- Net investment return of $2.3 billion (2016: $1.8 billion)
- Combined ratio of 114.0 percent (2016: 97.9 percent)
After a number of relatively benign catastrophe years, the frequency and scale of the disasters that struck around the world in the second half of 2017 saw major claims costing the Lloyd’s market $5.8 billion, more than double the previous year. The significant loss activity generated an underwriting loss of $4.4 billion for 2017 (2016: $0.6 billion profit), resulting in a combined ratio of 114.0 percent.
A total of $23.6 billion in claims gross of reinsurance was paid out by the Lloyd’s market during 2017.
The Lloyd’s market reports minimal impact on total resources which remain strong at $37.2 billion. Lloyd’s capital position remains robust and ratings remain at A (excellent) from A.M. Best, A+ (strong) from Standard & Poor’s and AA- (very strong) from Fitch.
“The market experienced an exceptionally difficult year in 2017, driven by challenging market conditions and a significant impact from natural catastrophes. These factors mean that for the first time in six years Lloyd’s is reporting a loss,” said Lloyd’s Chief Executive, Inga Beale. “Lloyd’s is here to support customers when it matters most, providing the financial support to enable businesses, governments, and most importantly people to recover and rebuild their lives as quickly as possible and I’m proud of the market’s response.”
Was this article valuable?
Here are more articles you may enjoy.