Lloyd’s reports “best interim result since 2007” for the first half of 2024 with COR of 83.7%

Lloyd’s of London has reported positive growth in its financial metrics for the first half of 2024. Total profit before tax improved year-on-year from £3.9 billion to £4.9 billion and the market’s combined operating ratio (COR) rose to 83.7%, compared to 85.2% in the same period last year.

Lloyd’s released its 2024 half-year results today (5 September 2024) and described the updated COR figure as “its best interim result since 2007”.

The underlying combined loss ratio also improved from 81.6 percent in the previous year to 80.6 percent for the first six months of the year.

Lloyd’s continued this trend, reporting a £0.6bn increase in its operating profit between the first half of 2023 and the first half of 2024, from £2.5bn to £3.1bn, and a 6.5% year-on-year increase in gross written premiums (GWP) to £30.6bn, up from £29.3bn last year (excluding exchange rate fluctuations).

Lloyd’s attributed the increase in GWP to increases in volumes and prices.

The marketplace’s recent focus on its operational performance has also resulted in a reduction in the loss ratio by 1.7% to 49.2% in the first half of 2024 (compared to 50.9% in the previous year). In addition, the expense ratio has decreased from 35.4% to 34.5% in the same reporting period.

The central solvency ratio for the first six months of the year is 520%, while the market-wide solvency ratio is 206%.

An “excellent set of results”

Commenting on Lloyd’s of London’s financial results, its Chief Executive John Neal said: “The first half of 2024 has delivered excellent results for the Lloyd’s market, representing a combination of disciplined underwriting, smart organic growth and real strength in Lloyd’s balance sheet.

“This is good news for both investors in the Lloyd’s insurance market and our customers as we continue to support them in an increasingly risky world.”