It looks like your browser is not up to date.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

Lloyd's of London posts £900m loss as Covid claims could hit £6.2bn

Wed 31 March 2021 10:46 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - Lloyd's of London said it expected 2020 payouts for insurance claims related to the Covid-19 pandemic to hit £6.2bn as it reported pre-tax net losses of £0.9bn in an "extremely challenging year".

The 335-year-old insurance market also cited natural catastrophe claims and Brexit for the crash in earnings. In 2019 it reported pre-tax profits of £2.5bn.

After taking into account reinsurance policies, the net cost of Covid-19 for the market was £3.4bn, while the pandemic added 13 percentage points to its combined ratio, a measure of claims payouts and other costs versus premiums paid by customers, pushing it to 110%.

Sales fell, with gross written premiums down £400m to £35.5bn. Net resources, which would be used to cover claims grew to £34bn from £30.6bn.

    The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.


    More company news from ShareCast