Posted 17/11/2023 – Quick takes
Forecasts as at 30th September 2023
Latest 2021 and 2022 year of account forecasts as at 3oth September 2023
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 22 consecutive quarters of rate rises at Lloyd’s, leading to a significant improvement in the annual underwriting results for 2021 and 2022: profits of £2.3bn for 2021 and £2.6bn for 2022 as against a loss of -£887m for 2020. Rate rises are expected to continue throughout 2024, thereby further increasing an already strong premium base.
The 2022 syndicate business planning season, for the underwriting year 2023, has led to even tighter restrictions on the weaker performing syndicates, whilst allowing greater opportunities for the stronger ones. The management team at Lloyd’s continues to hold the long-term profitability of the market as its core priority. The fruits of the drive towards better underwriting are already being evidenced in the continuing reduction in the underlying claims frequency for 2022 (down to a healthy 48% of premiums written, which is a reduction of 9 points over the past three years).
The flow of attractively priced business into Lloyd’s has meant that the market plans to underwrite premiums of circa £56bn for 2023, up from £46bn for 2022. This growth has enabled members to increase their underwriting on top class syndicates at a low cost. Due to the increased availability of good capacity there was a small reduction in auction prices during the autumn of 2022, leading to the cost of entry for new members reducing at a time when prospects for profitability were very strong.
The main benefits of Lloyd’s membership are:
Posted 17/11/2023 – Quick takes
Latest 2021 and 2022 year of account forecasts as at 3oth September 2023
Posted 17/11/2023 – News
Link to latest Member Services Newsletter
Posted 13/11/2023 – Quick takes
QBE has released updated forecasts for the 2021 and 2022 years of account for syndicate 386
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