Our performance

A risk business

Insurance underwriting is a risk business.

Members of Lloyd’s may experience losses as well as profits and any underwriting should normally be viewed as a long-term investment.

The importance of understanding the basic elements of insurance, the nature of the risks inherent in underwriting insurance at Lloyd’s and the potential risks inherent in a member’s portfolio of syndicates cannot be over-emphasised.

Given the nature of the Lloyd’s market, past results may be an unreliable guide to future prospects. Though insurance pricing is cyclical, loss frequency and severity is not correlated to the underlying strength or weakness of prices. Losses may, therefore, be sustained in years when prices are high.

Membership of Lloyd’s is not suitable for all. Prospective investors should seek independent financial advice before underwriting at Lloyd’s. We tailor our advice to ensure that the underwriting portfolio of each of our members reflects individual risk appetites and financial circumstances.