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There has been an improvement in Lloyd’s syndicate underwriting performance in 2023 throughout the majority of classes, with reinsurance “growing significantly”, according to a topical report from Howden Re.
According to the firm, property, reinsurance, marine, aviation and transport reported the largest premium growth over the last five years; experienced across most top syndicates.
Meanwhile, the 2023 combined ratio of 85% was 12 percentage points lower than the five-year average of 97% for the top 25 syndicates.
Howden Re observed that property, reinsurance and energy lines saw the biggest improvement in net combined ratio from 2022 to 2023, benefitting from a strong rate tailwind.
However, casualty experienced a reversal of price momentum, particularly in commercial D&O where the market continued to see rate reductions and cyber, which saw rate softening from increased competition.
The firm added that this improved Lloyd’s syndicate underwriting performance in 2023 was primarily driven by lower catastrophe losses, continued rate increases and agile risk selection.
David Flandro, Head of Industry Analysis and Strategic Advisory, Howden Re, commented, “Lloyd’s of London continues to demonstrate robust performance and resilience, particularly in the property, reinsurance and marine sectors.
“Our analysis highlights significant improvements in underwriting profitability in an environment of stable capacity, underscoring Lloyd’s strategic agility and market leadership.
“We are excited to see Lloyd’s commitment to innovation and selective risk appetite, positioning it for continued success.”
Chaucer’s syndicate 1084 was the largest reinsurance syndicate writer in terms of GWP in 2023, followed by Brit’s syndicate 2987 and then Liberty’s syndicate 4472.
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