Gallagher Re are pleased to announce the first annual publication of our Lloyd’s Market report which tracks the capital and profitability of the Lloyd’s market.

This report is an update on Lloyd’s of London covering its business model, capital, initiatives undertaken and analysis of underwriting performance for the 2021 year and has been prepared by Gallagher Re’s Strategic and Financial Analytics team in the UK.

Key Findings from this report:

  • Against a backdrop of four challenging years of +100% combined ratio Lloyd’s delivered a marked return to profitability in 2021 with gross written premiums increasing by 11%, combined ratio reducing to 93.5% representing pre-tax profits of £2.3billion and a 6.6% return on net average assets.
  • Attritional loss and expense ratios continued a five year declining trend, falling to 49% and 35% respectively, and the Lloyd’s market delivered a sixteenth consecutive quarter of positive rate movement, painting a positive picture of market performance, and trajectory.
  • COVID losses from 2020 remained stable with minimal impact in terms of reserve movements. COVID losses did not contribute to Lloyd’s major claims figures in 2021.
  • 2021 was a year not without challenges: the reduced attritional loss ratio offset a significant amount of natural catastrophe activity, which has continued to be a challenge for the market. Hurricane Ida, winter storm Uri and European Floods made notable contributions to major claims figures (11.2%).
  • Going into 2022, there are several challenges facing the market and wider industry including the ongoing pandemic, the war in Ukraine, inflation, and continued challenges for the Lloyds market to evolve from a technological and ESG perspective.