Having embarked on a three-year journey to improve performance, 2020’s process was all about delivering logical, realistic and achievable plans – something which was particularly important given the level of disruption and uncertainty caused by COVID-19. Whilst 2021 planning presented unique challenges for both the market and Corporation, we managed to make this year's process even smoother than the last and our substantially improved underlying underwriting performance in both our attritional loss ratio and net combined ratio really demonstrates the progress we’ve made in getting back to delivering sustainable profitability over the long term.
These foundations have given Lloyd’s a great platform for 2021. Market performance remains a key priority, with continued focus on sound business planning, underwriting discipline and strong portfolio management to enable a return to a profitable and sustainable market.
Fitch Ratings affirmed AA- (Very Strong) rating and removed negative watch
In September, Fitch Ratings affirmed Lloyd’s financial rating at AA- (Very Strong) and removed the negative watch, revising the outlook to stable. This sits alongside Lloyd’s A+ (Strong) rating with Standard & Poor’s, and A (Excellent) with A.M. Best – all of which support our exceptional financial strength.
Fitch’s decision reflected several positive factors, including the work we’ve done to further strengthen our capital position through our recapitalisation efforts to cover our COVID-19 losses. The significant improvements in Lloyd’s underlying underwriting performance was also a significant factor, with our half year results demonstrating that our robust approach to performance management and remediation is having a real impact, as we get back to delivering sustainable profitability long-term.
Chief of Markets
In June we announced the creation of a new senior position of Chief of Markets following a review of our previous ‘performance management directorate’. The Chief of Markets role will progress these priorities to deliver the impact and results we need right across the market from customer and distribution, through to underwriting business and oversight.
To serve the breadth of this role, we also created a single ‘Markets’ facing unit. This joins up all our customer interactions; from customer and distribution, through to underwriting businesses and oversight, as well as managing the relationship with distribution partners and running Lloyd’s global network. Our Corporation teams have been organised to ensure stakeholders’ engagement with our global platform is seamless, consistent, and intuitive throughout the lifecycle of risk transfer.
We are delighted that Patrick Tiernan will join Lloyd’s as Chief of Markets later this year, taking over from CEO John Neal who has been covering this role on an interim basis.