Lloyd’s market results hit hard by COVID-19

Lloyd’s has posted an aggregate market loss of £0.9bn for 2020 (2019: £2.5bn profit), including net incurred COVID-19 losses of £3.4bn after reinsurance recoveries. The market’s combined ratio deteriorated to 110.3% (2019: 102.1%). Gross written premiums for the year dipped slightly to £35.5bn (2019: £35.9bn) despite average premium rate increases of 10.8%.

John Neal, CEO of Lloyd’s, said: “Following an extremely challenging year marked by a global health crisis of a scale never seen before, Lloyd’s continued to support its customers with pay outs expected to total £6.2bn in COVID-19 claims. The year was also marked by a high frequency of natural catastrophe claims and the UK’s formal exit from the EU, driving further losses and uncertainty.

“Against this unprecedented backdrop we have made good progress across our performance, digitalisation, and culture transformation plans. Our disciplined underwriting approach and determination to become the world’s most advanced insurance marketplace have set us up for real success this year alongside the continued positive rate momentum that will see the market supporting growth for the first time in four years.”

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