Best’s News & Research Service - September 09, 2024 09:17 AM (EDT)
Best’s Market Segment Report: Lloyd’s Market Delivers Robust Underwriting Results Amid Strong Pricing Conditions
- September 09, 2024 09:17 AM (EDT)
//BestWire// - Lloyd’s reinsurance business has grown strongly in recent years, with a five-year compound average growth rate of 9%. In 2023, the market’s reinsurance premiums grew by 12.8%, driven by material growth in property and specialty lines, and benefitting from a strong risk-adjusted rate change. Nonetheless, casualty reinsurance has been the fastest growing line in Lloyd’s reinsurance business over the past five years, with a compound annual growth rate of 15%, according to a new AM Best report.
The Best’s Market Segment Report, “Lloyd’s Market Delivers Robust Underwriting Results Amid Strong Pricing Conditions,” forms part of AM Best’s look at the global reinsurance industry during the Rendez-Vous de Septembre in Monte Carlo. Additional reports, including AM Best’s annual analysis of the world’s largest reinsurance groups and in-depth looks at the insurance-linked securities, life/annuity, health and regional reinsurance markets, have been published 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 2023. 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 in terms of loss experience.
“After an exceptional reinsurance rate strengthening in 2023, there are signs of moderating pressures in certain lines in 2024,” said Tim Prince, director, analytics, AM Best. “However, good overall rate adequacy is expected to persist, and the market continues to focus on prudent risk selection. Underwriting results for 2024 are likely to remain strong but will be subject to natural catastrophe claims experience in the remainder of the year. Plus, with interest rates remaining higher for longer, Lloyd’s is looking to achieve another year of strong overall earnings.”
To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=346433.
For additional global reinsurance reports, please visit Best’s Research.
In addition, AM BestTV will be conducting interviews from Rendez-Vous de Septembre. Please visit the event playlist for video interviews during the conference.
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.