Lloyd’s confirms loss in full-year earnings
Lloyd’s, which earlier this month provided a peek into its 2022 performance, has now published its financial results for the full year.
According to Lloyd’s, here’s how it fared in 2022:
Metric
2022
2021
Gross written premium
£46.7 billion
£39.2 billion
Underwriting profit
£2.6 billion
£1.7 billion
Combined ratio
91.9%
93.5%
Profit/(loss) before tax
£(0.8 billion)
£2.3 billion
Net investment profit/(loss)
£(3.1 billion)
£0.9 billion
As previously projected, the investment loss drove Lloyd’s into the red, but a bounceback is expected in the coming years.
Lifting the lid on the negative result, Lloyd’s said: “Mark-to-market accounting rules on fixed income investments led to an overall loss of £0.8 billion. However, this loss is expected to reverse in the coming years as assets reach maturity and benefit from favourable interest rates.”
Lloyd’s chief executive John Neal also chose to focus on the positives.
“This is an outstanding underwriting result that follows several years of performance improvement, a comprehensive plan to digitalise our market, steady and sustained progress on our culture, and purposeful action to help our industry and society manage the biggest challenges of our time,” he commented.
“Looking to 2023, Lloyd’s expects strong premium growth to around £56 billion, a combined ratio below 95%, and a total investment performance on our assets of more than 3% – enabling us to support customers through the uncertain times ahead.”
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