The primary focus of Lloyd’s today is the sustainable profitability of the market, which means strict constraints for some and opportunities for others.

Improved premium rates.

The increased frequency of major insured losses since 2017 has combined with the global impact of COVID-19 and the war in Ukraine to drive 17 consecutive quarters of rate rises and a step-change in pricing across virtually every class of business. Rate rises are expected to continue throughout 2022, thereby further increasing an already strong premium base.

Improved oversight.

The syndicate business planning process has been increasingly robust, leading to tighter restrictions on the poor performing syndicates and increased opportunities for those that demonstrate ‘logical, realistic and achievable’ plans. Lloyd’s prioritises the sustainable long-term profitability of the market. We are now seeing the first signs of significantly lower underlying claims frequency.

Improved prospects for profitability.

The continuing modernisation of Lloyd’s will drive a reduction in expenses and contribute to a leaner, more innovative and increasingly profitable market. Optimised risk selection by the better syndicates, increasing premiums and reducing costs should combine, with a reducing attritional claims frequency, to enhance profit margins. The opportunities for third-party capital to invest profitably at Lloyd’s are therefore further increasing.

Why clients choose us

How we work

Investing at Lloyd’s

The main benefits of Lloyd’s membership are:

  • Limited liability
  • Direct access to underwriting returns
  • An opportunity for capital gains
  • Low correlation with other asset classes
  • Double use of assets and some leverage
  • Tax planning benefits (including pension and inheritance tax for UK residents).

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