Lloyd’s, the world’s leading marketplace for commercial, corporate and specialty risk solutions, has announced a strong set of financial results for the Full Year 2022 (FY2022).
The market’s profitable growth continued with Gross Written Premium (GWP) increasing by 19% to £46.7bn (FY2021: £39.2bn), including 4% volume growth.
Lloyd’s focus on sustainable performance resulted in an underwriting profit of £2.6bn (FY2021: £1.7bn) and a combined ratio of 91.9% – a 1.6 percentage point improvement and the strongest result since 2015. In a year that saw major losses contribute 12.7% to the combined ratio – including substantial claims from the conflict in Ukraine and Hurricane Ian in the US – Lloyd’s paid out over £21bn to customers.
The attritional loss ratio improved again to 48.4% (FY2021: 48.9%) while the expense ratio improved by 1.1 percentage points to 34.4% (FY 2021: 35.5%), reflecting efforts to deliver strong performance and reduce the cost of doing business at Lloyd’s. With prices increasing by 8%, the Lloyd’s market has now seen 20 consecutive quarters of positive price improvement.
Mark-to-market accounting rules on fixed income investments led to an overall loss of £0.8bn, however this loss is expected to reverse in the coming years as assets reach maturity and benefit from favourable interest rates.
Lloyd’s capital and solvency position continues to strengthen, with a central solvency and market-wide solvency ratio of 412% and 181% respectively (2021: 388% and 177%). Net resources stood at £40.2bn despite the investment loss, demonstrating the exceptional strength and resilience of Lloyd’s balance sheet.
STATS AT A GLANCE
The key figures reported in Lloyd’s 2022 full year results are:
- Gross written premiums of £46.7bn (2021: £39.2bn)
- Underwriting profit of £2.6bn (2021: profit of £1.7bn)
- Combined ratio of 91.9% (2021: 93.5%)
- Loss before tax of £0.8bn (2021: £2.3bn profit)
- Attritional loss ratio of 48.4% (2021: 48.9%)
- Net investment loss of £3.1bn (2021: £0.9bn profit)
- Net resources of £40.2bn (2021: £36.6bn)
- Central solvency ratio of 412% (2021: 388%)
- Market-wide solvency ratio of 181% (2021: 177%)
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