Lloyd’s have today issued the following notification:
The Lloyd’s market made a pre-tax profit of €2.5bn, recorded a 97.9% combined ratio and a return on capital of 8.1% for 2016.
Full details of Lloyd’s annual results 2016 can be found at: www.lloyds.com/annualreport2016
Conditions for the market remain extremely challenging with a continued downward pressure on pricing whilst traditional and alternative capital is attracted into the insurance industry.
The level of major claims for the year was €2.5bn and this was the fifth highest since 2000 due primarily to Hurricane Matthew and the Fort McMurray wildfire.
Lloyd’s continues to be rated A (excellent) by A.M. Best, AA- (very strong) by Fitch and A+ (strong) by Standard & Poor’s.
Given the circumstances we are operating in, it is vital that the Corporation does everything it can to support the market and make the platform attractive, whilst demonstrating value for money.
Our collective focus must be on providing customers with the products they want, embracing innovation and modernisation. The market has shown how well it can react in a rapidly changing risk environment with the considerable increase in cyber coverage throughout 2016 a perfect case in point. It is critical throughout 2017 we continue to demonstrate that Lloyd’s is the home for creativity and expertise.
Today we also confirm that following the United Kingdom’s decision to leave the European Union, a subsidiary office will be opened in Brussels, with the intention that it will be ready to write business for the January 1st renewal season in 2019.
While Lloyd’s will remain headquartered in London, the new company will write risks from all 27 European Union and three European Economic Area states after the United Kingdom has left the EU, providing our customers and partners continued access to the innovative solutions of the Lloyd’s market.
This will ensure that the Lloyd’s market can continue to do business with Europe without interruption when the UK leaves the EU.
SOURCE: LLOYD’S OF LONDON