The key figures reported in Lloyd’s 2020 Full Year Results are:
- Gross written premiums of £35.5bn (2019: £35.9bn)
- Combined ratio of 110.3 % (2019: 102.1%)
- Attritional loss ratio of 51.9% (2019: 57.3%)
- Net investment income of £2.3bn, 2.9% return (2019: £3.5bn, 4.8% return)
- Net resources of £33.9bn (2019: £30.6bn)
- Central solvency ratio of 209% (December 2019: 238%)
Excluding COVID-19 losses, the market delivered an underwriting profit of £0.8bn, demonstrating a significant improvement in Lloyd’s underlying performance. This is supported by 7.8 percentage point improvement of the underlying combined ratio (attritional loss ratio, expense ratio and prior year releases) which has dropped to 87.3%.
Gross written premiums of £35.5bn represent a 1.2% reduction over the same period in 2019. Exceptional market conditions driven by an acceleration in positive rate momentum throughout 2020 saw the market achieve average risk adjusted rate increases on renewal business of 10.8%. This was offset by a 12.0% reduction in GWP due to the remediation of underperforming business in 2020, reflecting the market’s continued focus on the quality of the business it renews and underwrites.
John Neal, Lloyd’s CEO, 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 COVID19 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.