Lloyd’s market falls to £2bn pre-tax loss
Thursday, 03 22 2018, Category: Insurance and Reinsurance, Country: United Kingdom
The Lloyd’s of London insurance and reinsurance market fell to a £2 billion pre-tax aggregated loss across the market in 2017, due to the impact of the major catastrophe loss events.
This compares to a pre-tax profit of £2.1 billion achieved in the more benign catastrophe year of 2016.
The hurricanes and other major catastrophes in the second-half of 2017 resulted in major losses of £4.5 billion at Lloyd’s, up significantly on and more than double its 2016 major loss load of £2.1 billion.
The Lloyd’s market’s underwriting loss for 2017 came in at £3.4 billion for the year, compared to a £500 million underwriting profit in 2016, as the combined ratio rose to 114% (up from 97.9% in 2016).
Bruce Carnegie-Brown, Chairman of Lloyd’s, commented on the catastrophe activity that Lloyd’s faced in 2017, saying, “After a number of relatively benign catastrophe years, the second half of 2017 demonstrated the precarious nature of the world in which we live.
“In addition to Hurricanes Harvey, Irma and Maria, among other events, there were also devastating wildfires in California, an earthquake in Mexico, monsoon flooding in Bangladesh and a mudslide in Colombia.