Skip to main content

Lloyd’s reports 2020 full year results

31 March 2021

Lloyd’s today announced an aggregated market loss of £0.9bn for 2020 (2019: £2.5bn profit), including net incurred COVID-19 losses of £3.4bn after reinsurance recoveries.

Throughout 2020, Lloyd’s provided significant support to its customers around the world impacted by the COVID-19 pandemic, with customer pay outs forecast to reach £6.2bn on a gross basis*. COVID-19 claims added 13.3% to the market’s combined ratio of 110.3%.   

Over the last three years, Lloyd’s sustained performance improvement measures contributed to an improved underwriting result of £1.9bn and a 7.5% improvement in the combined ratio, excluding COVID-19, to 97.0% (2018: 104.5%).

2020 saw premium rate increases of 10.8% with positive rate momentum continuing in the first quarter of 2021.

Lloyd’s maintains strong capital and solvency positions, with net resources increasing to £33.9bn in 2020 and a central and market wide solvency ratios of 209% and 147% respectively.

John Neal, Lloyd’s CEO, said: “Following an extremely challenging year marked by a global health crisis of a scale never seen before, Lloyd’s continued to support its customers with pay outs expected to total £6.2bn in COVID19 claims. The year was also marked by a high frequency of natural catastrophe claims and the UK's formal exit from the EU, driving further losses and uncertainty.

“Against this unprecedented backdrop we have made good progress across our performance, digitalisation, and culture transformation plans. Our disciplined underwriting approach and determination to become the world's most advanced insurance marketplace have set us up for real success this year alongside the continued positive rate momentum that will see the market supporting growth for the first time in four years.”

Lloyd’s 2020 Full year Results in detail:

Lloyd’s today announced a loss of £0.9bn (pre-tax) for 2020, driven by £3.4bn net incurred COVID-19 losses, which contributed 13.3% to the market’s combined ratio of 110.3%.

Excluding COVID-19 claims, the market’s combined ratio has shown substantial improvement at 97.0%, down from 102.1% in 2019.

The key figures reported in Lloyd’s 2020 Full Year Results are:

  • Gross written premiums of £35.5bn (2019: £35.9bn)
  • Combined ratio of 110.3 % (2019: 102.1%)
  • Attritional loss ratio of 51.9% (2019: 57.3%)
  • Net investment income of £2.3bn, 2.9% return (2019: £3.5bn, 4.8% return)
  • Net resources of £33.9bn (2019: £30.6bn)
  • Central solvency ratio of 209% (December 2019: 238%)

Excluding COVID-19 losses, the market delivered an underwriting profit of £0.8bn, demonstrating a significant improvement in Lloyd’s underlying performance. This is supported by 7.8 percentage point improvement of the underlying combined ratio (attritional loss ratio, expense ratio and prior year releases) which has dropped to 87.3%.

Gross written premiums of £35.5bn represent a 1.2% reduction over the same period in 2019.  Exceptional market conditions driven by an acceleration in positive rate momentum throughout 2020 saw the market achieve average risk adjusted rate increases on renewal business of 10.8%. This was offset by a 12.0% reduction in GWP due to the remediation of underperforming business in 2020, reflecting the market’s continued focus on the quality of the business it renews and underwrites.

The 2020 expense ratio saw a 1.5% improvement dropping to 37.2% (2019: 38.7%), and this remains a key area of focus, with the Future at Lloyd’s Blueprint Two solutions and delivery programme central to tackling total acquisition costs and administration expenses.

In 2020, the market’s net resources increased by 10.8% to £33.9bn as at 30 December 2020 (2019: £30.6bn), reinforcing the exceptional strength of Lloyd’s balance sheet with a central solvency ratio of 209% (December 2019: 238%). 

* £2.6bn of the gross £6.2bn COVID-19 pay outs are reinsured.

1. The Lloyd’s 2020 full-year results report is available at:
2. The Corporation committed a £15m package of support for charitable organisations responding to the pandemic.  
3. A combined ratio is a measure of an insurer’s underwriting profitability based on the ratio of net incurred claims plus net operating expenses to net earned premiums. A combined ratio of 100% is break even (before taking into account investment returns). A ratio less than 100% is an underwriting profit.
4. Central assets include the assets of the Central Fund and the other assets of the Corporation. In aggregate, the value of Lloyd’s central assets amounted to £3.3bn at 31 December 2020 (December 2019: £3.3bn). The Society financial statements are drawn up under IFRS (as adopted by the EU).
5. Lloyd’s strong financial strength ratings are A+ (Strong) stable outlook with Standard & Poor’s, A (Excellent) stable outlook with A.M. Best, AA- (Very Strong) with Fitch Ratings.
6. Members’ resources operate on a several basis and are only available to meet each member’s share of claims. Central assets are available at the Council’s discretion to meet the liabilities of any member on a mutual basis.
7. Foreign exchange rates may materially fluctuate from the rates prevailing at 31 December 2020 (£1 = US$1.37, £1 = €1.12). Premiums, claims and investment income are translated at the average exchange rate for the period to 31 December 2020 (£1 = US$1.28, £1 = €1.13).
8. For further detail on any forward-looking statements please refer to the 2020 Full Year results.

Enquiries to: 


+44 (0) 20 7327 5111 |
+44 (0) 20 7327 5391 |

+44 (0) 20 7327 5111 | 

+44 (0) 20 7327 5721 | 

+65 6870 9227 |    

About Lloyd’s
Lloyd’s is the world’s leading insurance and reinsurance marketplace. Through the collective intelligence and risk-sharing expertise of the market’s underwriters and brokers, Lloyd’s helps to create a braver world. 

The Lloyd’s market provides the leadership and insight to anticipate and understand risk, and the knowledge to develop relevant, new and innovative forms of insurance for customers globally. 

It offers the efficiencies of shared resources and services in a marketplace that covers and shares risks from more than 200 territories, in any industry, at any scale. 

And it promises a trusted, enduring partnership built on the confidence that Lloyd’s protects what matters most: helping people, businesses and communities to recover in times of need.

Lloyd’s began with a few courageous entrepreneurs in a coffeeshop. Three centuries later, the Lloyd’s market continues that proud tradition, sharing risk in order to protect, build resilience and inspire courage everywhere.