Lloyd’s says preliminary figures show the business is set to report improved underwriting earnings for last year, supported by price increases and organic growth.

But investment losses of around £3 billion ($5.5 billion) will tip the business into a pre-tax loss of £800 million ($1.46 billion), Lloyd’s says in the guidance ahead of the scheduled release of its 2022 results on March 23.

In 2021 Lloyd’s earned £2.3 billion ($4.2 billion) in profit before tax and investment income of £900 million ($1.6 billion).

Australia and New Zealand Regional Head Chris Mackinnon says the Australian business performed solidly last year. Lloyd’s is a major capacity provider to underwriting agencies here and Australia is its fourth largest market.

He says total gross signed premium in Australia is expected to exceed $4 billion for the first time, which would be up from $3.4 billion in 2021.

“The market's growth in premium from Australia has been exceptional in 2022,” Mr Mackinnon told insuranceNEWS.com.au.

“We are delighted with these results, and with the significant contribution that has come from Lloyd’s strong position in the Australian market.”

The Lloyd’s preliminary update says gross written premium (GWP) grew in excess of 19% to more than £46 billion ($84 billion) last year, up from £39.2 billion ($71 billion) in 2021.

The higher GWP reflected a combination of growth from the strong US dollar, direct price increases (8%) and organic growth (3%).

Underwriting performance improved more than expected, by 1.6 percentage points. The result led to a combined ratio of 91.9% despite major claim losses including from the conflict in Ukraine and from Hurricane Ian in Florida. In 2021 Lloyd’s combined ratio was 93.5%.