Skip to main content

Lloyd’s reports aggregated market results for 2018

Wed 27 Mar 2019

Following another costly year for natural catastrophes in which the market paid $26.4bn (£19.7bn) in claims (gross of reinsurance), Lloyd’s has today reported an aggregated market loss of $1.3bn (£1.0bn) for 2018 (2017: loss of £2.0bn).

The key figures reported in Lloyd’s Annual Report 2018 are:

  • Aggregated market loss of $1.3bn (£1.0bn) (2017: Loss of £2.0bn)
  • Gross written premiums of $47.6bn (£35.5bn) (2017: £33.6bn)
  • Net incurred claims of $22.0bn (£16.4bn) (2017: £18.3bn)
  • Net investment return of $675m (£504m) (2017: £1.8bn)
  • Combined ratio of 104.5% (2017: 114.0%)

Last year saw several large natural catastrophes, including hurricanes Florence and Michael, Typhoon Jebi in Japan, as well as the Californian wildfires. These disasters led to major claims costing the Lloyd’s market $3.9bn (£2.9bn), significantly higher than the long-term average (£1.9bn), which contributed to a combined ratio of 104.5% in 2018.

Despite these substantial claims, Lloyd’s strengthened its financial position. Total assets grew by 9% to $149.9bn (£118.0bn), and Lloyd’s net resources increased by 2% to $35.8bn (£28.2bn). Meanwhile, Lloyd’s central assets also saw growth of 8% to $4.1bn (£3.2bn). This financial security underpins every Lloyd’s policy and gives customers confidence in the market’s ability to provide financial support when it is needed most.

Against a backdrop of global uncertainty and challenging market conditions, Lloyd’s 2018 aggregated results showed green shoots of improvement. After several years of rate softening, the pricing environment saw strengthening by 3.2% on renewal business and the beginning of improvement in the attritional loss ratio which reduced 1.3% on the previous year.

Meanwhile, the Lloyd’s market continued to focus on driving improved performance. A rigorous business planning process for 2019 removed almost $4.0bn (£3.0bn) of poorly performing business from the market and remediation plans were implemented across all review classes of business. Four new syndicates started trading in 2018 demonstrating Lloyd’s enduring appeal and the market’s continuous focus on innovation.

Lloyd’s is also ready for Brexit through its new Brussels subsidiary, which is fully operational and writing risks. This provides certainty for our customers in the European Economic Area (EEA) that they can continue to access Lloyd’s insurance products, services and expertise. The market also made good progress on modernisation in 2018, evidenced by a substantial increase in adoption of technology solutions, including electronic placement.

The market’s aggregated 2018 results report a combined ratio of 104.5%, and a £1.0bn loss. This performance is not of the standard that we would expect of a market that has both the heritage and quality of Lloyd’s. We have implemented stronger performance management measures which will remain an enduring feature of how we go about our business. We expect these actions to deliver progressive performance improvement across the market beginning in 2019 and in the years to come.

In addition to accelerating our plans for improved performance, over the last six months we have asked hundreds of stakeholders to tell us how we should evolve Lloyd’s to build a collective vision for the future. We have today released a preview of this vision in advance of a full prospectus to be published on 1 May that discusses the future of insurance at Lloyd’s.
Lloyd’s Chief Executive, John Neal

Results at a glance




Loss before tax

$1.3bn (£1.0bn)


Gross written premiums

$47.6bn (£35.5bn)


Combined ratio



Investment return

$675m (£504m) (0.7%)

£1.8bn (2.7%)

Return on capital (annualised)



  1. The Lloyd’s 2018 Annual Report can be accessed at:
  2. 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.
  3. The metrics referred to in this release are defined in the Other Information section of the 2018 Annual Report, which includes details on financial metrics considered by Lloyd’s to be Alternative Performance Measures (APMs).”
  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 £3.2bn at 31 December 2018 (2017: £3.0bn). The Society financial statements are drawn up under IFRS (as adopted by the EU).
  5. Lloyd’s is rated AA- (very strong) with Fitch, A+ (strong) with Standard & Poor’s and A (excellent) with A.M. Best.
  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. This press release includes forward-looking statements. These statements are based on currently available information. They reflect Lloyd’s current expectations, projections and forecasts about future events and financial performance. All forward-looking statements address matters that involve risks, uncertainties and assumptions. Based on a number of factors, actual results could vary materially from those anticipated by the forward-looking statements. These factors include, but are not limited to, the following:
    • a. Rates and terms and conditions of policies may vary from those anticipated.
    • b. Actual claims paid and the timing of such payments may vary from estimated claims and estimated timings of payments, taking into account the preliminary nature of such estimates.
    • c. Claims and loss activity may be greater or more severe than anticipated, including as a result of natural or man-made catastrophic events.
    • d. Competition affecting the basis of pricing, capacity, coverage terms or other factors may be greater than anticipated.
    • e. Reinsurance placed with third parties may not be fully recoverable, or may not be paid on a timely basis, or such reinsurance from creditworthy reinsurers may not be available or may not be available on commercially attractive terms.
    • f. Developments in the financial and capital markets may adversely affect investments of capital and premiums, or the availability of equity capital or debt.
    • g. Changes in legal, regulatory, tax or accounting environments in relevant countries may adversely affect: (i) Lloyd’s ability to offer its products or attract capital, (ii) claims experience, (iii) financial return, or (iv) competitiveness.
    • h. Economic contraction or other changes in general economic conditions could adversely affect: (i) the market for insurance generally or for certain products offered by Lloyd’s, or (ii) other factors relevant to Lloyd’s performance.
    • i. The foregoing list of factors is not comprehensive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. Lloyd’s undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
  8. Foreign exchange rates may materially fluctuate from the rates prevailing at 31 December 2018 (£1 = US$1.27, £1 = €1.11). Premiums, claims and investment income are translated at the average exchange rate for the year to 31 December 2018 (£1 = US$1.34, £1 = €1.13).

Enquiries to:

Nathan Hambrook-Skinner

Senior Media Relations Manager

Tel: +44 (0)20 7327 6125 


About Lloyd’s

Lloyd’s is the world’s specialist insurance and reinsurance market.

With expertise earned over centuries, Lloyd’s is the foundation of the insurance industry and the future of it. Led by expert underwriters and brokers in more than 200 territories, the Lloyd’s market develops the essential, complex and critical insurance needed to underwrite human progress. 

Backed by diverse global capital and excellent financial ratings, Lloyd’s works with a global network of over 4,000 insurance professionals to grow the insured world – building resilience for businesses and local communities and strengthening economic growth around the world.