Frédérique De Simone
18 September 2019 13:30
The Lloyd’s recorded a profit of associate before income taxes of 2.3 billion pounds sterling during the first six months of 2019, compared to 0.6 billion pounds sterling for the period ending June 30, 2018.
Its combined ratio, however, loses a bit of the braid in the course of the year, rising from 95.5 % in the first half of 2018 to 98.8% for the same period this year.
For the first 6 months of 2019, gross premiums written grew by 1.8% compared to the same period in 2018, down from 19.7 billion pounds sterling. However, by eliminating exchange rate fluctuations and the growth of new unions, there is every reason to believe that the year 2019 will be comparable to that of 2018, and could lead to a shift of the annual premiums of 2.6 %, according to the semi-annual report of the Lloyd s.
“The Lloyd’s market is evidence of increased discipline in 2019, as evidenced by a reduction in gross written premiums and an improvement in the loss ratio attritionnelles related to the current subscription. However, we recognize that it is important to continue to focus on performance management to maintain this momentum throughout 2019 and even beyond, ” said president and ceo of Lloyd’s, John Neal.
Change to reduce loss
The Lloyd’s market has recorded a decrease in its ratio of losses attritionnelles during the one-year subscriptions, compared to the same time in 2018. The volume of activities was also reduced by 6.5 %, while the underwriters were required to increase the rate of 3.9 % in order to better adjust to the risks and thus to improve their performance. Taken together, these changes reflect the strengthening of underwriting discipline applied in 2019, according to John Neal.
“While ensuring that our market can generate sustainable and profitable growth, we must make courageous decisions to meet the expectations of our customers and all our stakeholders in the future,” he adds.
Despite all that, the London market remains stable and strong. Rating of financial strength has recently been confirmed by a few firms ratings. S&P Global Ratings awarded him the rating of ” A + “, is to be strong, AM Best has for its part given the rating of ” A “for excellent and Fitch it was granted the rating of” AA- “, that is to say, very strong.