The 2023 results of the non-life Lloyd’s syndicates were a significant improvement on the previous year as the market reported an 81% uptick in its aggregate underwriting result, according to our latest analysis of individual syndicate accounts.
These syndicates reported a £2.8bn aggregate underwriting profit for 2023, up from £1.6bn the previous year as the market made it three consecutive years of underwriting profitability.
This upturn in performance was driven by a 25% fall in gross claims incurred to £14.4bn – down from £19.2bn in 2022 – although this was partially offset by a 13% increase in operating expenses to £10.0bn (2022: £8.8bn).
These rising expenses will be of concern to the industry, with current expense levels considerably higher than those reported for the years between 2018 and 2021 after a 20% jump in costs in 2022.
Premium growth has also slowed over the last 12 months, with gross written premium (GWP) rising by 6.8% to £34.1bn. This follows two years of double-digit premium growth in the market after premiums increased by 28.1% and 12.4% in 2022 and 2021 respectively.
Property insurance has reclaimed its title as the most profitable business line at Lloyd’s. A 21% increase in GWP to £13.1bn means it is also now the market’s biggest line after it climbed above third party liability insurance with premiums of £11.5bn, down from £12.3bn a year earlier.
Property syndicates reported an aggregate underwriting profit of £1.6bn – comfortably ahead of the second most profitable business line, third party liability insurance with an underwriting result of £578.1m.
As well as seeing premiums rise, property syndicates also benefitted from a 33% fall in gross claims incurred, which more than offset the 18% increase in operating expenses.
And it has been a good year all round for the Lloyd’s market, with each business line reporting an aggregate underwriting profit for the second consecutive year.
This was primarily driven by falling claims costs across all but one business line – motor insurance with gross claims incurred rising by 38% to £475.9m.
Underwriting results for each Lloyd’s syndicate, broken down by business line, are available on our market intelligence platform. You can request a free trial here.
The results will also feature in next month’s Insurance Times Top 50 Insurers report, with the findings of this report to be discussed in our next webinar, Best-in-class Underwriting in the Digital Age, in partnership with Insurance Times. The webinar takes place at 11am on Tuesday 15 October.
