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

Better Premium Rates

The frequency of major insured losses during the period 2017 to 2022, culminating in Hurricane Ian in September 2022 (which is thought to be the second most costly US hurricane ever) has driven 24 consecutive quarters of premium rate rises at Lloyd’s, leading to a significant improvement in the annual underwriting results (before investment returns) for 2021, 2022 and 2023: profits of £2.3bn for 2021,£2.6bn for 2022 and £5.9bn for 2023, as against an underwriting loss of -£887m for 2020. Rate rises are expected to continue in most classes through 2024, thereby further increasing an already strong premium base.

Better Underwriting Oversight

The 2023 syndicate business planning season, for the underwriting year 2024, continued to apply tight restrictions on the weaker syndicates, whilst allowing greater opportunities for the stronger ones. By enabling the best syndicates to maximise their growth and restricting the amount of risk the weaker ones can take, the overall market result has demonstrably improved to a combined ratio (claims and expenses as a percentage of premiums received) of 84% for 2023 (down from 91.9% in 2022) resulting in a record overall profit of £10.7bn.

Better Prospects for Profitability

The continuing flow of attractively priced business into Lloyd’s has meant that the market plans to underwrite premiums of circa £57bn for 2024, up from £52bn for 2023. This growth has enabled existing members to increase their underwriting on top class syndicates, whilst it is still possible to buy into the forecast strong open year profit streams, on a three year account basis, for the 2022, 2023 and 2024 years (at a significant discount to the ultimate profit), by buying a limited liability vehicle.

Why clients choose us

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Investing at Lloyd’s

The main benefits of Lloyd’s membership are:

  • Limited liability
  • Attractive returns
  • Liquidity via sale of LLV
  • Low correlation with other asset classes
  • Double use of assets and some leverage
  • Tax efficiency & estate planning benefits

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