‘Lloyd’s continued to demonstrate its value’ in 2024: CEO Neal

John Neal, Chief Executive Officer of Lloyd’s of London, has reflected on a year shaped by geopolitical instability, economic uncertainty, and accelerating technological change.

In his statement, he began by expressing gratitude to employees and market members, stating, “I would like to thank members of the market and Corporation employees for their commitment and dedication to achieve this result for 2024 – this is the product of many years of focus and has been hard-won.”

The year 2024 saw a global landscape defined by shifting geopolitical dynamics, extreme weather events, and the accelerating pace of technological risks. Yet despite these challenges, Lloyd’s remained steadfast in its role in the global insurance market.

Neal elaborated, “Throughout 2024, Lloyd’s continued to demonstrate its value as the world’s insurance partner, assisting and protecting economic growth, resilience and innovation around the world.”

Financially, Lloyd’s saw a robust performance, posting a £5.3bn underwriting profit and a combined operating ratio of 86.9%. Neal pointed out, “This result was underpinned by resilient underlying profitability across the market, with a combined ratio excluding major losses of 79.1%, now consistently around 80%.”

The market also saw growth in gross written premiums, which rose by 6.5% to £55.5 billion, driven by a blend of volume growth and modest price increases. Neal noted, “This growth was supported by several new entrants to Lloyd’s, underscoring the growing attractiveness of our market.”

While many sectors saw positive performance, Neal acknowledged the complexities in certain lines of business, particularly casualty and specialty insurance, which required careful attention due to geopolitical and economic risks.

He stated, “The market’s consistent underwriting discipline and responsiveness to changing risk dynamics meant that we saw positive trends across a number of lines of business throughout 2024.”

Lloyd’s capital position remained strong throughout 2024, with a central solvency ratio of 435% and a market-wide solvency ratio of 205%. Neal highlighted, “Lloyd’s continued to maintain an exceptionally strong capital position, with a central solvency ratio of 435% and a market-wide solvency ratio of 205%.”

Additionally, Lloyd’s achieved significant credit rating upgrades, with AM Best raising its rating from A to A+ in August 2024, following a similar upgrade from S&P Global at the end of 2023.

As part of its long-term strategy, Lloyd’s continues to invest in digital transformation. Neal touched on the ongoing Blueprint Two initiative, designed to upgrade the technology platform that serves the market. “We are upgrading a platform shared by thousands of businesses, paying almost £60,000 in claims per minute,” he explained.

Although the transition to the new platform is taking longer than originally planned, with recent reports suggesting the cutover has been delayed until next year at least, Neal assured stakeholders, “Although it will take longer than anticipated to switch over to the new platform, I am comfortable that we are putting safety first.”

Alongside technological advancements, Lloyd’s has also focused on fostering a more inclusive and diverse culture. In 2024, the company introduced the Lloyd’s Inclusive Futures coalition to support ethnically diverse talent within the insurance industry.

Neal expressed, “We are committed to fostering a culture of high performance and inclusion,” noting that the market had made considerable progress in achieving gender balance and creating more opportunities for diverse talent within leadership roles.

Looking ahead, Neal expressed confidence that Lloyd’s is well-positioned to face the continued shifts in the global risk landscape. “I am confident that Lloyd’s strongest years are ahead of it. There is no doubt that the world needs what Lloyd’s provides: an ability to provide the confidence to millions of people and businesses to innovate, invest and take managed risk,” Neal concluded.

With increasing challenges from global supply chain disruptions, climate change, cyber risks, and emerging technologies, he sees the demand for Lloyd’s solutions continuing to grow.

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