Lloyd’s has reported a £10.7 billion ($20.7 billion) profit before tax for last year after its underwriting result more than doubled and investment returns rebounded. 

The result compares with a year-earlier £800 million ($1.5 billion) loss, with that result dragged down by investment impacts related to mark-to-market accounting. 

Underwriting profit for last year rose to £5.9 billion ($11.4 billion) from £2.6 billion ($5 billion), with the combined operating ratio improving from 91.9% to 84%, the best figure since 2007. 

“The results ... are our best in recent history, with an outstanding underwriting result underpinned by a strong and resilient balance sheet,” Lloyd’s CEO John Neal said. 

“Our ability to attract – and provide returns on – capital is vital to ensuring we can support our customers through uncertainty.” 

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. 

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 Lloyd’s has been on a “remarkable journey” over the past five years and a focus on underwriting discipline, profitable growth and digitalisation has enabled the market to turn around its performance, and reduce cost and complexity. 

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 Lloyd’s to present and utilise better data and insights, Mr Neal says. 

“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.”