Lloyd’s of London fell to a loss of £438m for the first half of 2020, noting that its member syndicates would pay some £2.4bn in pandemic-related claims for the first six months. Lloyd’s said its total loss due to Covid-19 claims was likely to be around £3bn. In H1 last year the market booked a gain of £2.3bn.
Chairman Bruce Carnegie-Brown told Reuters said that losses due to the pandemic could continue for several years.
The combined ratio deteriorated to 110.4%, from 98.8% a year earlier.
Excluding Covid-19 claims the combined ratio improved to 91.7%.
Gross written premiums rose by 1.7% to £20bn.
Carnegie-Brown said marine and aviation were among the loss-making lines; he expected more syndicates to leave Lloyd’s, but said that the market also had a “strong pipeline of new applicants”.
Lloyd’s reopened its underwriting floor last week. The floor can operate at up to 45% of its former capacity.