Fewer catastrophe events, combined with lower and less frequent casualty claims, helped Lloyd’s syndicates deliver another strong set of results in 2015, according to Standard & Poor’s.
The average combined operating ratio (COR) was 90%, but the ratings agency added that some syndicates have been hit by strong competition, excess capacity, and softening rates.
“We were not surprised to find that the under-performers included new syndicates, which are typically burdened by high start-up expenses when they enter the Lloyd’s market,” the S&P report said.
“On the other hand, top performers were mostly cautious and proactive in terms of cycle management, with good underwriting discipline.”
The study of 94 syndicates found that 31% saw their COR rise by more than 5 percentage points in 2015. Meanwhile all the biggest syndicates with an allocated capacity of more than $1bn reported CORs below 100%, with an average of 88%.
Syndicates reporting underwriting losses represented only about 12% of the Lloyd’s market’s overall 2015 allocated capacity of £26.1bn.
Syndicates reporting CORs above 100% rose to 23% from 18% in 2014. Of these 21 syndicates, nine reported a COR of over 115% in 2015, up from seven syndicates in 2014.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
No comments yet