Lloyd's in 'strong position' to respond to COVID-19 impacts

Written by Adam Cadle

26/03/2020

Lloyd’s of London has today confirmed that the market is in a “strong position” to respond to the impacts of COVID-19, with net resources increasing by 8.6% to £30.6bn in 2019 and a central solvency ratio of 238%.

In its 2019 annual results published today, Lloyd’s said despite there having been a high degree of turbulence in the financial markets over recent weeks, as at 19 March its solvency ratio stood at 205%.

The strength of the market’s balance sheet has been further bolstered by Lloyd’s return to profit of £2.5bn (2018: loss of £1bn) in 2019, driven by the repair in investment markets in the first half of 2019.

Gross written premiums were recorded at £35.9bn, compared to £35.5bn in 2018. Investment return for 2019 was £3,537m compared to £504m in 2018. Equity investments achieved “exceptional gains”, Lloyd’s stated, and bond investments also performed well.

Lloyd’s chairman Bruce Carnegie-Brown said: “The beginning of 2020 has proved exceptionally difficult as COVID-19 spreads rapidly around the world with devastating consequences for families, communities and the global economy. Now more than ever, our customers need us to be ready to support them through these challenging times.

“At Lloyd’s, we are laying the foundations to do this more effectively. By focusing on performance management, modernising the market and creating a market culture that will attract the best and brightest talent, we are making the market more resilient, more successful and better placed to meet our customers’ needs.”

Related Articles