Conditions over the course of the year were extremely challenging with continued downwards pressure on rates whilst traditional and alternative capital remained attracted to the insurance industry.
Pre-tax profit of $2.6bn (£2.1bn) (2015: £2.1bn).
Return on capital of 8.1% (2015: 9.1%).
Combined ratio of 97.9% (2015: 90.0%).
Gross written premiums increase to $40.3bn (£29.9bn) (2015: £26.7bn).
Major claims for 2016 were $2.8bn (£2.1bn) (2015: £0.7bn)
The level of Lloyd’s major claims, $2.8bn, was the fifth highest this century and above the long-term average. This was due primarily to Hurricane Matthew and the Fort McMurray Wildfire in Canada.
The lower underwriting result in 2016 was offset by significantly improved investment returns, driven by a downward yield shift in the bond markets, and foreign exchange gains, principally caused by sterling depreciation.
Lloyd’s has continued to enjoy progress across its major global markets: securing its position as the leading provider in excess and surplus lines in the United States; transferring over half its managing agents to the Shanghai and Beijing platforms; and being granted final approval to open an onshore office for reinsurance in Mumbai.
It was also confirmed that following the United Kingdom’s decision to leave the European Union, a subsidiary office will be opened in Brussels with the intention that it will be operational for the January 1st renewal season in 2019.