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Lloyd’s reports return to profit and a resilient capital position in 2021 results

24 Mar 2022

Lloyd’s, the world’s leading marketplace for commercial, corporate and specialty risk solutions, today announced a strong return to profitability in its 2021 full year financial results, with an overall profit of £2.3bn (2020: £0.9bn loss) and a combined ratio of 93.5% (2020: 110.3%) – the best quality result reported for six years.

The material turnaround in performance has been driven by the Lloyd’s market’s keen focus on underwriting profitability, as well as leveraging favourable trading conditions to achieve premium growth. Premium rates increased by 10.9%, continuing the trend of 16 consecutive quarters of positive rate movement.

Lloyd’s continued to provide significant support to its customers around the world, paying £19.9bn of gross claims in 2021. Lloyd’s has also paid £2.9bn to customers impacted by COVID-19 (86% of claims notified to date).

Against a year of heightened natural catastrophe activity, the combined ratio fell to 93.5% (2020: 110.3%, 97.0% excluding COVID-19) – a 16.8% improvement, and testament to Lloyd’s continued focus on achieving sustainable, profitable performance.

The drive to improve performance has resulted in a further 3.0% reduction in attritional loss ratio to 48.9% (2020: 51.9%), with the expense ratio of 35.5% (2020: 37.2%) showing a 1.7 percentage point improvement. Lloyd’s focus on sustainable performance and investment in digitalisation through its Blueprint Two programme is designed to continue to drive down expenses.

The capital and solvency position at Lloyd’s is very strong and continues to build. Net resources increased by £2.6bn to £36.6bn, underlining the exceptional strength and resilience of Lloyd’s balance sheet with central solvency and market solvency ratios of 388% and 177% respectively (2020: 209% and 147%). The quality of Lloyd’s balance sheet, protection offered to customers and opportunities for market growth were further reinforced by the announcement in 2021 of a landmark £650 million five-year protection for its Central Fund.

Lloyd’s believes that the ongoing conflict in Ukraine will be a major claim to the market in 2022 and is in close dialogue with market partners to understand exposures. Business underwritten by the Lloyd’s market in Ukraine, Russia and Belarus currently represents less than 1% of Lloyd’s global footprint. Direct and indirect claims are expected to fall within manageable tolerances and will not create solvency challenges. Lloyd’s continues to work in lockstep with governments and regulators around the world to support and implement a complex series of sanctions on the Russian State.

“As we announce these results today, our thoughts are first and foremost with the people of Ukraine. In a world buffeted by increasingly complex and connected risks – from the pandemic to a geopolitical conflict – the Lloyd’s market is standing by its customers and supporting their recovery when things go wrong. Against this backdrop, I’m pleased to see the market return to profitability following the decisive action taken in recent years to improve performance. The market’s underwriting discipline will enable sustainable profitability in the years to come, coupled with a balance sheet that can support our ambition to grow profitably.”
John Neal, CEO, Lloyd’s

The key figures reported in Lloyd’s 2021 full year results are:

  • Gross written premiums of £39.2bn (2020: £35.5bn)
  • Profit before tax of £2.3bn (2020: £0.9bn loss)
  • Underwriting profit of £1.7bn (2020: loss of £2.7bn)
  • Combined ratio of 93.5% (2020: 110.3%, 97.0% excluding COVID-19)
  • Underlying combined ratio of 82.3% (2020: 87.3%)
  • Attritional loss ratio of 48.9% (2020: 51.9%)
  • Net investment income of £0.9bn, 1.2% return (2020: £2.3bn, 2.9% return)
  • Net resources of £36.6bn (2020: £33.9bn)
  • Central solvency ratio of 388% (2020: 209%)

1. 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.
2. 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 £3.1bn at 31 December 2021 (December 2020: £3.3bn). The Society financial statements are drawn up under IFRS (as issued by the International Accounting Standards Board).
3. 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 and AA- with Kroll Bond Rating Agency.
4. 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.
5. Foreign exchange rates may materially fluctuate from the rates prevailing at 31 December 2021 (£1 = US$1.35, £1 = €1.19). Premiums, claims and investment income are translated at the average exchange rate for the period to 31 December 2021 (£1 = US$1.38, £1 = €1.16).
6. Figures stated are rounded to one decimal place.
7. For further detail on any forward-looking statements please refer to the 2021 Full Year results.

8. Statement on how Lloyd’s is responding to events in Ukraine.
9. Blueprint Two sets out a comprehensive strategy to deliver profound change in the Lloyd’s market through digitalisation. The second edition of the Blueprint Two Interactive Guide, released on 28 January 2022, provides key updates on the Future at Lloyd’s solutions and includes a roadmap detailing dates and key actions that will digitalise the market, making it better, faster, and cheaper for all participants. 
10. London Bridge Risk PCC is a platform which makes it easier for investors to access the Lloyd’s market and offers a more transparent and efficient capital management process. Find out more about investing at Lloyd’s  here.
11. Lloyd’s ESG strategy and responsible business approach outlines its commitment to insuring the transition to net zero by providing the vital risk management solutions that will underpin and enable businesses, governments and economies to take brave action, drive forward climate innovation and accelerate critical decarbonisation activities over the years ahead. 
12. Lloyd’s culture dashboard tracks the collective progress of the Corporation and market towards a much more inclusive environment.

13. Lloyd’s studio is available for TV and radio broadcasts 
14. More news and information available from 

Enquiries to: 


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

+44 (0) 20 7327 6125 | 

+44 (0) 20 7327 5721 | 

+65 6870 9227 |    

About Lloyd’s
Lloyd’s is the world’s leading marketplace for commercial, corporate and specialty risk solutions. Through the collective intelligence and expertise of the market’s underwriters and brokers, we’re sharing risk to create a braver world. 

The Lloyd’s market offers the resources, capability and insight to develop new and innovative products for customers in any industry, on any scale, in more than 200 territories. 

We’re made up of more than 50 leading insurance companies, over 200 registered Lloyd’s brokers and a global network of over 4,000 local coverholders. Behind the Lloyd’s market is the Corporation: an independent organisation and regulator working to maintain the market's successful reputation and operation.

We’re working to build solutions for the most current and prevalent threats. As Chair of the Insurance Task Force for HRH The Prince of Wales’s Sustainable Markets Initiative, Lloyd’s is bringing the industry together to insure the transition to net zero. Our research community is pooling expertise from across the industry to provide cutting edge insight on systemic risks from climate change to cyber security. 

And through our digital-led strategy, The Future at Lloyd’s, we’re making it easier and cheaper to place, price and process cover in the Lloyd’s market.