Alpha Insurance Analysts Limited’s Post

Today we have announced our 2024 Half Year results, which represent a combination of disciplined underwriting, smart organic growth and real strength in the Lloyd’s balance sheet. Lloyd’s CEO, John Neal commented: "This is good news for both investors in the Lloyd’s insurance marketplace and our customers as we continue to support them in an increasingly risky world.” The key figures reported in Lloyd’s 2024 Half Year results are:  ✔ Gross written premium of £30.6bn (HY 2023: £29.3bn)  ✔ Underwriting profit of £3.1bn (HY 2023: £2.5bn)  ✔ Combined ratio of 83.7% (HY 2023: 85.2%)  ✔ Underlying combined ratio of 80.6% (HY 2023: 81.6%)  ✔ Investment return of £2.1bn (HY 2023: £1.8bn)  ✔ Result before tax of £4.9bn (HY 2023: £3.9bn)  ✔ Total capital, reserves and subordinated loan notes of £43.5bn (FY 2023: £45.3bn)  ✔ Central solvency ratio of 520% (FY 2023: 503%)  ✔ Market-wide solvency ratio of 206% (FY 2023: 207%) Read the press release here: https://lnkd.in/exTgKzTJ #FinancialResults #Performance #Leadership

These are stellar results for Lloyd's to report with the lowest combined ratio for an interim result since 2007.  Lloyd’s CEO, John Neal commented “𝘞𝘦 𝘤𝘰𝘯𝘵𝘪𝘯𝘶𝘦 𝘵𝘰 𝘴𝘦𝘦 𝘱𝘰𝘴𝘪𝘵𝘪𝘷𝘦 𝘵𝘳𝘦𝘯𝘥𝘴 𝘢𝘤𝘳𝘰𝘴𝘴 𝘢 𝘯𝘶𝘮𝘣𝘦𝘳 𝘰𝘧 𝘭𝘪𝘯𝘦𝘴, 𝘸𝘪𝘵𝘩 𝘱𝘳𝘰𝘱𝘦𝘳𝘵𝘺 𝘤𝘭𝘢𝘴𝘴𝘦𝘴 𝘨𝘦𝘯𝘦𝘳𝘢𝘭𝘭𝘺 𝘸𝘦𝘭𝘭 𝘱𝘳𝘪𝘤𝘦𝘥 𝘢𝘯𝘥 𝘴𝘰𝘮𝘦 𝘢𝘵𝘵𝘦𝘯𝘵𝘪𝘰𝘯 𝘢𝘯𝘥 𝘧𝘰𝘤𝘶𝘴 𝘴𝘵𝘪𝘭𝘭 𝘯𝘦𝘦𝘥𝘦𝘥 𝘰𝘯 𝘤𝘢𝘴𝘶𝘢𝘭𝘵𝘺 𝘤𝘭𝘢𝘴𝘴𝘦𝘴. 𝘈𝘴 𝘢 𝘸𝘩𝘰𝘭𝘦, 𝘸𝘦’𝘳𝘦 𝘴𝘦𝘦𝘪𝘯𝘨 ‘𝘴𝘶𝘱𝘦𝘳 𝘤𝘺𝘤𝘭𝘦’ 𝘤𝘰𝘯𝘥𝘪𝘵𝘪𝘰𝘯𝘴 𝘣𝘢𝘴𝘦𝘥 𝘰𝘯 𝘢 𝘱𝘳𝘰𝘵𝘳𝘢𝘤𝘵𝘦𝘥 𝘱𝘦𝘳𝘪𝘰𝘥 𝘰𝘧 𝘴𝘵𝘢𝘣𝘭𝘦 𝘤𝘢𝘱𝘪𝘵𝘢𝘭 𝘢𝘯𝘥 𝘶𝘯𝘥𝘦𝘳𝘸𝘳𝘪𝘵𝘪𝘯𝘨 𝘤𝘰𝘯𝘥𝘪𝘵𝘪𝘰𝘯𝘴”  The outlook for profitability remains positive with Lloyd's CFO, Burkhard Keese, estimating that in a hypothetical repeat of 2017's record major losses the market's net combined ratio would still be profitable at below 95% - in 2017 it was actually 114%.

Lloyd’s of London Half-Year Results 2024 Lloyd’s of London has announced a strong performance for the first half of 2024, highlighting its resilience and strategic growth: 📈 Gross Written Premium: £30.6bn (+6.5% YoY) 💼 Underwriting Profit: £3.1bn 📊 Combined Ratio: 83.7% (Best interim result since 2007) 💰 Profit Before Tax: £4.9bn 📉 Expense Ratio: 34.5% 📈 Investment Return: £2.1bn 🔒 Central Solvency Ratio: 520% CEO John Neal highlighted the market’s disciplined underwriting and strong balance sheet, emphasising Lloyd’s commitment to supporting customers in an increasingly uncertain world. https://lnkd.in/e5tGQvcm #Insurance #Reinsurance #FinancialResults #LloydsOfLondon

"Lloyd’s experienced a third consecutive year of double-digit premium growth, with gross written premiums climbing by 11.6% to £52.1 billion (FY2022: £46.7 billion), driven by a 4% increase in volume." https://lnkd.in/dejwCNi8 #outsourcing #insuranceindustry #insurance #insurancebroker #mgas #insuranceclaims #insurancesolutions #FLINKBusinessSolutions

The mid-year 2024 GAAP financial results for 41 North American property/casualty (p/c) (re)insurers reveal very strong operating returns across sectors, driven by improved underwriting results and higher investment income. Double-digit operating return on common equity was generated by nearly every segment, with particularly strong results in personal lines led by auto, Florida homeowners, commercial specialty and reinsurance. Learn more: https://ow.ly/tXvK50TehIj #FitchRatings #Insurance #Reinsurance

A recent media report highlighted premium increases in some specialities. The reality is average increases for the majority of Avant members have been below CPI for the last few years and will be similar for the upcoming financial year renewal. At Avant, we are committed to keeping premiums stable for our members. Michael Lynch, General Manager - Product and Chief Reinsurance Officer, explains how we achieve this through our financial strength and extensive claims data. Learn about the key factors that influence premiums and our strategies for maintaining stability. Read the full article here: https://bit.ly/45z93OZ

#MCResearchPro | LIC has put up a modest performance in Q1FY25, but a churn in its product mix holds out hope. This can lead to a gradual valuation rerating for the stock of the insurance behemoth. report Neha Dave, CFA Read more on this👇 https://lnkd.in/dyvv4kbm #LIC #Q1Results #Valuations #Insurance #Stock

Goldilocks should be granted an honorary Ph.D. considering how often she appears in forecasts of the #economy. Leaning into it: We see P/C #insurance cos doing Ok in economic environments that are ‘just right’ or even ‘too hot’. It’s only in the ‘too cold’ scenario that we see insurers underperforming relative to current expectations. In a quick hit video we explain how earnings and sales forecasts for the #SP500 lend insights into P/C pricing strategies. https://bit.ly/4dSL7Kf

🚨NEW OGDEN RATE IS OUT…. 0.5% Broadly in line with market expectations. Three thoughts from me: 1️⃣ A rate reduction has been mostly priced in by insurers, so not expecting to see an immediate big drop in premiums quoted / paid by customers. However, may contribute to keeping the market softer for longer 2️⃣ Comes early enough to factor into 1/1/25 reinsurance renewals, which should help ease some uncertainty around motor XoL pricing. 3️⃣ Will be interesting to see how the annoucment affects year-end 2024 results. Will insurers release any surplus cash, or will they take the opportunity to strengthen margins. Suspect there will be a wide variation across the market. Charl Cronje it must feel good to be able to talk about the Ogden rate again?! Well done on your contribution to the government working group! 🎉

Great news for the reinsurance industry 🌟 Moody's has just upgraded its outlook for global reinsurers from stable to positive. The shift is driven by stronger commercial finance fundamentals—higher pricing, stricter underwriting policies, and healthier investment income. In response to recent crises and substantial losses, reinsurers have raised rates and narrowed coverage, resulting in greater financial stability. 📈 While price hikes are expected to slow, the industry’s solid balance sheets and favorable property reinsurance pricing are paving the way for continued growth in commercial finance. This outlook upgrade signals a promising future for the sector, providing opportunities for stakeholders to capitalize on this momentum. What’s your take on the latest Moody’s outlook? Let’s discuss in the comments! 💬👇 📚 Sources: Reuters, Moody’s #Reinsurance #CommercialFinance #InvestmentBanking #Finance #FinancialOutlook #RiskManagement #InsuranceMarket #PrivateEquity #CapitalRaising #MergersAndAcquisitions #PricingStrategy #GlobalEconomy #FinancialStability #InvestmentIncome