Lloyd’s has reported an aggregated market loss of £900 million for 2020 (2019: £2.5 billion profit), including net incurred Covid-19 losses of £3.4 billion after reinsurance recoveries.
Throughout 2020, Lloyd’s provided significant support to customers around the world affected by the pandemic, with customer payouts forecast to reach £6.2 billion on a gross basis. Covid-19 claims added 13.3% to the market’s combined ratio of 110.3%.
Lloyd’s said in September 2020 that it expected to pay out up to £5 billion on Covid-19 claims.
Over the last three years, Lloyd’s sustained performance improvement measures contributed to an improved underwriting result of £1.9 billion and a 7.5% improvement in the combined ratio, excluding Covid-19, to 97% (2018: 104.5%).
Last year saw premium rate increases of 10.8% with positive rate momentum continuing in the first quarter of 2021
Lloyd’s maintains strong capital and solvency positions, with net resources increasing to £33.9 billion in 2020 and a central and market wide solvency ratios of 209% and 147%, respectively.
John Neal, chief executive officer at 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 payouts expected to total £6.2 billion 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.”