Lloyd's of London anticipates $2.3 billion in losses due to Californian wildfires, though CFO Burkhard Keese assured this wouldn't affect overall capital reserves. The insurance marketplace reported £55.5 billion in gross written premiums, a 6.5% rise, but saw a dip in profit before tax to £9.6 billion. Despite higher claims pushing the combined ratio to 86.9%, the performance outshines 2022 figures, with a focus on strong profitability. Upcoming results for 2025 are awaited to address future catastrophe management and maintain capital stability.
While such claims will dent profits next year, Burkhard Keese, Lloyd's chief financial officer, stressed that it would not be a 'capital event' and should not erode the market's overall capital reserves.
Despite a drop in profit before tax to £9.6 billion, the figures significantly surpass the £2.6 billion underwriting profit it posted in 2022, reflecting how 2023 was an exceptional year.
Citing a continued focus on 'strong profitability and disciplined growth,' Keese emphasised that the market had 'delivered another excellent underwriting year' for investors.
Full results and guidance for 2025 will be published next Thursday, with both underwriters and brokers watching closely for any updates on how Lloyd's will address future catastrophe risks.
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