The remedial work undertaken by the Lloyd’s market and robust performance oversight by the Corporation, as well as improving market conditions in more recent years, have supported measurable improvements in underlying performance, according to a new AM Best report.
The Best’s Market Segment Report, “The Lloyd’s Market Can Point to Measurable Improvements in Underlying Performance,” is part of AM Best’s look at the global reinsurance industry ahead of the Rendez-Vous de Septembre in Monte Carlo. Additional reports, including AM Best’s annual ranking of the Top 50 global reinsurance groups and in-depth looks at the insurance-linked securities, life/annuity, health and regional reinsurance markets, will be available during August and September.
Lloyd’s is a leading player in the global reinsurance space and reinsurance represents its largest segment, accounting for 33% of its gross written premium (GWP) in 2022. Lloyd’s underwriting performance is subject to volatility due to the nature of business underwritten; however, according to the report, the market continues to outperform the U.S. and Bermudian reinsurance markets and the European Big Four reinsurers in terms of loss experience.
“The strong pricing environment has continued into 2023, which together with a greater focus on underwriting discipline and risk selection by the market, should support good underlying performance in 2023,” said Tim Prince, director, analytics, AM Best. “However, AM Best notes that rate increases are necessary to offset the impact of claims inflation and a trend of higher catastrophe losses.”
To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=335376.
For additional global reinsurance reports ahead of Rendez-Vous de Septembre, please visit Best’s Research.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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Jessica Botelho-Young, CA
Associate Director, Analytics
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Director, Industry Research – EMEA
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Director, Market Development & Communications
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