LONDON (Reuters) – Lloyd’s of London swung to a first-half pre-tax profit of 1.4 billion pounds ($1.93 billion), helped by rising premium rates, the commercial insurance market said on Thursday.
Lloyd’s, which reports the combined results of its 100-odd syndicate members, recorded a loss of 400 million pounds for the same period a year ago.
Insurers suffered in 2020 due to hefty COVID-19 claims such as event cancellation and trade credit cover. But after writing exclusions into contracts for the pandemic and raising premiums, they have performed strongly this year.
Premium rates rose 9.9%, Lloyd’s said in a statement.
Lloyd’s has also made a push in recent years for its members to exit loss-making insurance lines.
It launched its first sustainability strategy last year and is trying to put more of its business online and improve its record on diversity.
“Lloyd’s has successfully repositioned the market for sustainable, profitable growth,” CEO John Neal said.
“We are making great strides on all our strategic priorities which focus on improving the culture in the market, the Future at Lloyd’s digital transformation, and sustainability, climate and inclusion.”
Lloyd’s had a combined ratio of 92.2%, compared with 110.4% a year earlier. A level below 100% indicates an underwriting profit.
It said 80% of COVID-19 claims notified to date had been paid.
($1 = 0.7257 pounds)
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