Lloyd’s has reported a half-year profit before tax of £3.92 billion ($7.67 billion), rebounding from a year-earlier loss of £1.8 billion ($3.52 billion) on the market’s best underwriting performance since 2007 and a turnaround in investment returns.

 “All in all, it was a strong six months for Lloyd’s,” CEO John Neal said. “Our balance sheet is both profitable and resilient and our strategic initiatives continue to drive us towards a more efficient, sustainable and inclusive market.”

Gross written premium increased 21.9% to £29.31 billion ($57.33 billion), with the underwriting profit rising to £2.5 billion ($4.9 billion) from £1.22 billion ($2.39 billion). The combined operating ratio improved to 85.2% from 91.4%. 

Lloyd’s says growth and rating increases were boosted by the property segment, offset by less attractive conditions in some areas of casualty. 

“Major claims represented 3.6% of losses in the first half of 2023, marking a relatively light period for catastrophe losses but giving us the necessary resilience for the traditionally catastrophe-heavy second half of the year,” Mr Neal said. 

The market reported a net investment gain of £1.81 billion ($3.54 billion) compared to a £3.12 billion ($6.1 billion) loss a year earlier.

Lloyd’s says its balance sheet continued to strengthen with a central solvency ratio of 438% and market-wide solvency ratio of 194%, showing its capital discipline and resilience through a range of market conditions.

Regional Head of Australia and New Zealand Chris Mackinnon says Lloyd’s half-year report doesn’t focus in on country level results, but he pointed to local momentum, and the positive overall performance of the market.

“I can say that the premium growth in Australia in the first half of 2023 has continued, and is in line with the overall Lloyd’s position,” he told insuranceNEWS.com.au.

“Although we are only half way through the year, these very positive results provide a platform to spur us on to execute our plans and drive growth through 2023 and into 2024.”