Lloyd’s of London’s annual underwriting profit doubles

(Reuters) — Lloyd’s of London’s said Thursday that its underwriting profit jumped 127% in 2023 to £5.9 billion ($7.52 billion), as commercial insurers have cut back on riskier business and raised premiums.

Gross written premiums rose by 11.6% to £52.1 billion across the commercial insurance market, which has more than 50 member firms, Lloyd’s said in an unscheduled trading update ahead of full results being reported on March 28.

“We continued to see sustainable, profitable growth and performance,” Lloyd’s Chief Financial Officer Burkhard Keese said in the statement.

“We will maintain our focus on underwriting and capital discipline.”

Premium growth consisted of 4% organic growth and 7% from price increases, Lloyd’s said.

Commercial insurers have grappled with a pandemic, wars, inflation and rising losses from natural catastrophes by excluding some business and raising prices.

Lloyd’s insurers Beazley and Hiscox, two of the biggest players in the market, reported record annual results this week.

Lloyd’s posted an investment return of £5.3 billion, helped by higher interest rates, compared with a loss of £3.1 billion in 2022.