Lloyd’s has delivered a £10.7 billion ($20.7 billion) profit before tax, compared with a year-earlier £800 million ($1.5 billion) loss, thanks to a stronger underwriting result and recovery in investments. 

The market, which released preliminary figures last month, confirmed underwriting profit rose to £5.9 billion ($11.4 billion) from £2.6 billion ($5 billion).

CEO John Neal says the results are the best in Lloyd’s recent history. 

“Lloyd’s has been on a remarkable journey over the past five years,” he says in the annual report. “Our focus on underwriting discipline, profitable growth and digitalisation has enabled us to turn around our market’s performance, reduce cost and complexity, and step up to lead our industry in supporting our customers through a sustained period of uncertainty.” 

The net investment return of £5.3 billion ($10.3 billion) reversed a £3.1 billion ($6 billion) loss, reflecting higher interest rates and the unwinding of mark-to-market paper losses. 

Gross written premium increased 11.6% to £52.1 billion ($100.8 billion), driven by volume growth of 4% and with price increases of 7% offsetting inflationary trends. The Lloyd’s market has recorded 24 consecutive quarters of price improvement. 

The combined operating ratio improved to 84% from 91.9%, the strongest result since 2007. 

Exposure to major losses in the year, including the earthquake in Turkey, Hawaii wildfires, Cyclone Gabrielle and Hurricane Idalia, fell to £1.3 billion ($2.5 billion) from £4.1 billion ($7.9 billion) the previous year, which included Hurricane Ian and Ukraine conflict impacts. 

Mr Neal says the market will continue its digital transformation through Blueprint Two this year and next, enhancing the resilience of the technology and operating frameworks, and equipping the market to present and utilise better data and insights. 

“We stand at an important point in the insurance cycle where the nature of risk, and the value of insurance, is demonstrated by the industry growing at a much faster rate than GDP,” he said. 

“Our performance, which remains our number one priority, means we have earned the right to continue growing profitably and sustainably.”