Magazine date:
Nov 2019 
The loss ratio has particularly deteriorated during the reporting period from 48.6% in 2013 down to 65.4% in 2018. However, with an average of 59.2% over the last five years, Lloyd’s loss ratio has remained well below the 65.8% reported by the four major European groups and the 63.4% of the Bermudan market.
Due to rising loss experience of natural disasters, the ROE of the London market fell sharply to -7.3% in 2017 and -3.7% in 2018 while in 2013 it was set at 16.2%. Within the average five-year period, the ROE of the London market is twice as low as that of the four major reinsurers (4.1% versus 8.2%).
Read also | Reinsurance: evolution of loss experience [4]
Main indicators of the Lloyd’s: 2013-2018
In billions USD
| Indicator | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 5-year average |
|---|---|---|---|---|---|---|---|
Non life net written premiums | 33.4 | 31.1 | 31.2 | 28.4 | 33.6 | 32.5 | 31.3 |
Net earned premiums | 22.5 | 30.4 | 30.5 | 27.9 | 33.1 | 31.9 | 30.7 |
Net investment income | 1.4 | 1.6 | 0.6 | 1.7 | 1.9 | 1.3 | 1.4 |
Total revenues | 33.5 | 32 | 31.1 | 30 | 35.5 | 32.7 | 32.3 |
Net result | 5.3 | 4.9 | 3.1 | 2.6 | -2.7 | -1.3 | 1.3 |
Shareholder’s equity | 33.6 | 35.1 | 35.9 | 34.1 | 36.1 | 34.8 | 35.2 |
Loss ratio | 48.6 | 49 | 49.9 | 57.3 | 74.5 | 65.4 | 59.2 |
Management expenses ratio | 38.2 | 39.1 | 40.1 | 40.6 | 39.5 | 39.2 | 39.7 |
Combined ratio % | 86.8 | 88.1 | 90 | 97.9 | 114 | 104.6 | 98.9 |
Return on Equity (ROE ) in % | 16.2 | 14.7 | 8.9 | 8.1 | -7.3 | -3.7 | 4.1 |
Return on Revenue (ROR) in % | 15.8 | 15.3 | 10.1 | 8.6 | -7.6 | 3.9 | 4.5 |
Source : AM Best