Lloyd’s reports its first annual loss in six years
Lloyd’s of London has today reported its first annual loss in six years.
Pretax profit for 2017 stood at a loss of £2bn, compared to a profit of £2.1bn in 2016.
Lloyd’s paid out a total of £18.3bn in claims, with just under a quarter (£4.5bn) of that for natural disasters such as Hurricanes Irma, Maria and Harvey, as well as the wildfires in California, an earthquake in Mexico and flooding in Bangladesh.
The £4.5bn spent on major claims was more than double the previous year (£2.1bn).
This loss activity generated an underwriting loss of £3.4bn for 2017 (2016: £0.5bn profit), resulting in a combined ratio of 114.0%, compared to 2016’s 97.9%.
Chief executive, Inga Beale said: “The market experienced an exceptionally difficult year in 2017, driven by challenging market conditions and a significant impact from natural catastrophes.”
Lloyd’s chairman Bruce Carnegie-Brown said: “To date, the market has paid more than 50% by value of the claims notified in relation to Harvey, Irma and Maria, and is in the process of paying the rest.”
Beale continued: “Lloyd’s is here to support customers when it matters most, providing the financial support to enable businesses, governments, and most importantly people to recover and rebuild their lives as quickly as possible and I’m proud of the market’s response.”