Lloyd's of London hails 'outstanding' year despite profits hit

(Sharecast News) - Lloyd's of London reported a slide in profits on Thursday, following a raft of catastrophes in the US. The centuries-old insurance and reinsurance market said underwriting profits fell 10% in 2024 to £5.3bn, with pre-tax profits also 10% lower, at $9.6n.

Lloyd's said the major claims ratio rose to 7.8% due to "significant" catastrophe events during the year, including hurricanes Milton and Helen and the Baltimore Bridge collision.

However, the underlying combined ratio - a key measure of underwriting profitability, excluding major claims - was 79.1%, an improvement on 2023's 80.5%. Lloyd's said the ratio reflected the market's "ongoing focus on consistent profitability".

Gross written premiums also improved, rising to £55.5bn from 2023's £52.1bn.

Outgoing chief executive John Neal said the market had delivered "another year of outstanding financial performance, with a superb combined ratio, underlying combined ratio and attritional loss ratio supporting a capital position claims reserve strength that is as strong as it has ever been".

Neal, who took up the role in 2018, announced he was quitting one of the City's biggest jobs in January. His leaving to become chief executive of insurer Aon.

Former Treasury secretary Charles Roxburgh, who takes over as chair in May, will lead the search for his successor.

Lloyd's is made up for around 50 insurance companies and more than 380 registered brokers.