Aon Benfield’s Analysis of the Lloyd’s Market

June 26, 2013

Aon Benfield Analytics’ Market Analysis team has released its latest Lloyd’s Update report, covering the market’s 2012 financial results and business position in 2013

The report highlights the following “key findings:
— Lloyd’s reported a pre-tax profit of £2.8 billion [$4.3 billion] for 2012, after a loss of £500 million [$768 million] in 2011. This represented a return on capital employed of 14.8 percent.

— Gross premiums written rose by 8.6 percent to £25.5 billion [$35.18 billion], aided by an average risk-adjusted rate increase of 3.0 percent and transfers of business from the company market.

— The underwriting result was a profit of £1.7 billion [$2.612 billion], after a loss of £1.2 billion [$1.844 billion] in 2011. The combined ratio improved from 106.8 percent to 91.1 percent.

— The overall surplus on prior year reserves stood at £1.4 billion [$2.15 billion] (2011: £1.2 billion), representing 7.2 percent (6.5 percent) of net premiums earned.

— The net cost of large losses was £1.8 billion [$2.766 billion] (2011: £4.6 billion [$7.068 billion]), representing 9.7 percent (25.5 percent) of net premiums earned, of which £1.4 billion, [$2.15 billion] related to Hurricane Sandy.

— The total investment return rose by 37 percent to £1.3 billion [$2.0 billion], the increase being driven by capital gains on bonds and equities.

— Total net resources rose by 6 percent to a new high of £20.2 billion [$31.04 billion] at the end of 2012, split £17.7 billion [$27.2 billion] to members’ assets and £2.5 billion [$3.843 billion] to central assets.

Mike Van Slooten, international head of Market Analysis at Aon Benfield Analytics, commented: “The continued attractiveness of the Lloyd’s platform is reflected in record levels of market capacity and high levels of M&A activity. The market has outlined its long term strategy to grow, internationalize and diversify in ‘Vision 2025’.”

Source: Aon Benfield

Aon Benfield Analytics’ Market Analysis team has released its latest Lloyd’s Update report, covering the market’s 2012 financial results and business position in 2013

http://thoughtleadership.aonbenfield.com/Documents/20130625_marketanalysis_lloyds_update_fy2012.pdf

The report highlights the following “key findings:
 Lloyd’s reported a pre-tax profit of £2.8 billion [$4.3 billion] for 2012, after a loss of £500 million [$768 million] in 2011. This represented a return on capital employed of 14.8 percent.

 Gross premiums written rose by 8.6 percent to £25.5 billion [$35.18 billion], aided by an average risk-adjusted rate increase of 3.0 percent and transfers of business from the company market.

 The underwriting result was a profit of £1.7 billion [$2.612 billion], after a loss of £1.2 billion [$1.844 billion] in 2011. The combined ratio improved from 106.8 percent to 91.1 percent.

 The overall surplus on prior year reserves stood at £1.4 billion [$2.15 billion] (2011: £1.2 billion), representing 7.2 percent (6.5 percent) of net premiums earned.

 The net cost of large losses was £1.8 billion [$2.766 billion] (2011: £4.6 billion [$7.068 billion]), representing 9.7 percent (25.5 percent) of net premiums earned, of which £1.4 billion, [$2.15 billion] related to Hurricane Sandy.

 The total investment return rose by 37 percent to £1.3 billion [$2.0 billion], the increase being driven by capital gains on bonds and equities.

 Total net resources rose by 6 percent to a new high of £20.2 billion [$31.04 billion] at the end of 2012, split £17.7 billion [$27.2 billion] to members’ assets and £2.5 billion [$3.843 billion] to central assets.

Mike Van Slooten, international head of Market Analysis at Aon Benfield Analytics, commented: “The continued attractiveness of the Lloyd’s platform is reflected in record levels of market capacity and high levels of M&A activity. The market has outlined its long term
strategy to grow, internationalize and diversify in ‘Vision 2025’.”

Source: Aon Benfield

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