Exceptional Lloyd’s 2023 results demonstrate resilience of the market: ICMR, LMA

Lloyd’s exceptional 2023 results demonstrate the resilience of the market as we heads into uncertain times, according to a joint report from the Lloyd’s Market Association (LMA) and Insurance Capital Markets Research (ICMR).

If you recall, in late March, the global insurance and reinsurance marketplace posted a solid set of results for 2023 which included £52.1bn of gross written premium, with an underwriting result of £5.9bn and pre-tax profit of £10.6bn.

Meanwhile, the combined ratio was 84.0%, down from 91.9% in 2022, the return on investment improved to 5.4%, and the return on capital reached 25.3%, its best since 2007.

As per the LMA and ICMR joint report, Lloyd’s is “delivering on its promises of returns to investors” with profits to market participants at an all-time high.

“This has arisen from both favourable trading conditions across most classes of business as well as a return to more normal investment valuations following the mark-to-market losses of 2022,” the report explained.

Paul Davenport, Finance & Risk Director at the LMA, added, “Lloyd’s results last year have been exceptional and demonstrate the resilience of the market as we head into uncertain times.”

Markus Gesmann, co-founder of ICMR, said, “The 2023 results are a testament to the combined efforts of syndicates and managing agents across Lloyd’s.

“Our analysis and data highlight the areas where strategic decision-making and underwriting discipline have paid off. It also demonstrates that Lloyd’s can be a great platform for entrepreneurs and investors.”

In related news, further analysis by ICMR and the LMA recently revealed that the specialist Lloyd’s marketplace has, in aggregate, exceeded its weighted average cost of capital for the first time in the last decade. Read more on that here.

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