Lloyd's of London Sees Much Improved Underwriting Results in 2022, But Poor Investment Results Sting says ALIRT Insurance Research

In its recent release, ALIRT discusses the financial performance of both the Lloyd's of London insurance market and individual syndicates in 2022.

HARTFORD, Conn., April 25, 2023 /PRNewswire/ -- The Lloyd's of London insurance market reported a second consecutive year of improved underwriting results in 2022, according to a recent report by ALIRT Insurance Research. The better performance for Lloyd's in recent years followed the introduction in 2018 of a stricter performance review regimen.

The overall Lloyd's market, which consists of approximately 95 underwriting syndicates, reported a market-wide combined ratio of 91.9% in 2022, its strongest since 2015 despite continued challenges tied to the adverse impact on loss trends of inflation and catastrophic weather events. Unfortunately, large unrealized losses in market participants' investment portfolios led to an overall operating loss for the year, the market's fourth such loss over the past six years.

In its Lloyd's of London Market Overview - 2022, ALIRT discusses the overall market's premium growth, underwriting metrics, investment performance, and operating returns over the past decade. The release also highlights the strongest and weakest syndicate performances in 2022, as measured by the firm's proprietary 2-page ALIRT Analyses which it issues annually for clients on all active syndicates.

As ALIRT writes in its conclusion, "It is sometimes necessary to take one step back to take two steps forward." The Lloyd's market took this idiom to heart when it decided in 2018 to refocus its underwriting efforts on achieving sustainable underwriting profitability. While it is always painful to walk back revenue and established distribution relationships, that is precisely what the market did over several years – and it is reaping the benefit of that strategy now. 

The analytics firm believes that the Lloyd's market should continue to rebound in 2023 given the persistent firm rate environment, with the direction of global economic conditions and frequency and severity of catastrophic losses as important wildcards to future performance.

For a copy of the full report, please contact ALIRT at [email protected]

About ALIRT Insurance Research

ALIRT Insurance Research models the financial performance trends of life, health, and property & casualty insurers versus their peers and respective insurance industry sectors.  This work is used by ALIRT's clients to meet due diligence, competitive intelligence, and sales/marketing needs.  With over 20 years of experience, long-time insurance market relationships, and an emphasis on service, ALIRT helps its customers go beyond ratings and financial data to enhance and strengthen their insurance carrier oversight efforts.

SOURCE ALIRT Insurance Research