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Lloyd’s reports strong 2021 half year results with £1.4bn profit and 92.2% combined ratio


*Please note that in the press release issued yesterday announcing Lloyd’s half year results, we published a combined ratio figure for half year 2020 of 97.0% excluding COVID-19 claims. This figure is for full year 2020. The results presentation and press release have been updated.

All numbers for the disclosure of the 2021 half year results are correct and not impacted.

Lloyd’s today announced an aggregated profit of £1.4bn for the first half of 2021 (HY 2020: £0.4bn loss), driven by a substantially improved underwriting result of £1bn.

Gross written premiums increased to £20.5bn (HY 2020: £20.0bn) due to an increase in premium rates, high customer retention and new growth for the first time in four years.

Premium rates increased by 9.9%, continuing the trend of 15 consecutive quarters of positive rate movement.

The combined ratio of 92.2% (HY 2020: 110.4% and 97.0% excluding COVID-19 claims for FY 2020) is a solid improvement with a 4.8 percentage point reduction on the previous year, excluding COVID-19. These results demonstrate the substantial turnaround of Lloyd’s profitability and performance.

Lloyd’s continued to provide significant support to its customers around the world, paying £9.4bn of claims, including to customers impacted by COVID-19 where 80% of the claims notified to date have been paid.

Improvements to the combined ratio have been driven by notable reductions to both the attritional loss ratio and the expense ratio. The attritional loss ratio of 50.5% (HY 2020: 52.6%), is a 2.1 percentage point reduction from the ratio reported for the first six months of 2020. The expense ratio of 35.8% (HY 2020: 37.7%) is a 1.9 percentage point improvement, and 3.7 percentage points improvement since 2017. The reduction in operating expenses remains a focus of Lloyd’s digital transformation programme.

Lloyd’s maintains strong capital and solvency positions, with net resources increasing by £2.6bn to £36.5bn, reinforcing the exceptional strength of Lloyd’s balance sheet with central solvency and market solvency ratios of 218% and 170% respectively (FY: 2020 209% and 147%).

John Neal, Lloyd’s CEO, said: “In an uncertain world Lloyd’s remains acutely focused on supporting our customers when they need us, and in the first half of 2021 we have paid out nearly £10bn in claims to help the recovery of businesses and economies globally.

“Against this backdrop, Lloyd’s has successfully repositioned the market for sustainable, profitable growth as evidenced in this strong set of financial results. I am encouraged to see that market performance has improved as a result of our ongoing remediation efforts. This, as well as our exceptionally strong balance sheet, brings Lloyd’s performance in line with our global peer group. 

“Alongside performance, 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 which underpin our purpose.”

The key figures reported in Lloyd’s 2021 Half Year Results are:

  • Gross written premiums of £20.5bn (HY 2020: £20.0bn)
  • Profit before tax of £1.4bn (HY 2020: loss of £0.4bn)
  • Underwriting profit £1.0bn of (HY 2020: loss of £1.3bn)
  • Combined ratio of 92.2% (HY 2020: 110.4%)
  • Underlying combined ratio of 85.4% (HY 2020: 89.8%)
  • Attritional loss ratio of 50.5% (HY 2020: 52.6%)
  • Net investment income of £0.6bn, 0.8% return (HY 2020: £0.9bn, 1.2% return)
  • Net resources of £36.5bn (FY 2020: £33.9bn)
  • Central solvency ratio of 218% (FY 2020: 209%)

1. The Lloyd’s 2021 half-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 £3.1bn at 30 June 2021 (December 2020: £3.0bn). The Society financial statements are drawn up under IFRS (adopted pursuant to Regulation (EC) No. 1606/2002 as it applies in the European Union).
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 and AA- from Kroll Bond Rating Agency.
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 30 June 2021 (£1 = US$1.38, £1 = €1.16). Premiums, claims and investment income are translated at the average exchange rate for the period to 31 December 2020 (£1 = US$1.39, £1 = €1.15.
8. For further detail on any forward-looking statements please refer to the 2021 Half Year Results
9. Blueprint Two is the second phase of Lloyd’s Future at Lloyd’s strategy and details the digital-led change and execution plan which will transform the way in which Lloyd’s operates. To read the full Blueprint Two report visit our Future at Lloyd’s hub here:

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.