The Lloyd’s of London insurance market has reported a £1.8bn ($2.07bn) pre-tax loss for the first half of 2022, reversing last year’s £1.4bn profit.
Underwriting activities earned a £1.2m profit, compared with £963m a year earlier.
But the underwriting gains were wiped out by a £3.1bn investment loss.
Gross premium increased to £24bn from £20.4bn in the first six months of the year.
Lloyd’s marine and aviation sector earned £1.83bn in premium and a £26m underwriting profit.
Chief executive John Neal noted the part the market had played in helping businesses and people get through the pandemic, the Ukraine crisis, climate change and, most recently, inflation.
He also stressed marine insurance’s role in allowing the resumption of humanitarian food exports from Ukraine.
“When grain supplies became stranded in Ukraine’s ports, Lloyd’s provided essential backing to a United Nations-brokered deal securing its recovery, while launching a landmark facility to insure the shipments,” he said.
Lloyd’s has set aside £1.1bn to cover Ukraine-related losses, mostly related to the aviation sector.
In a separate development, Lloyd’s said that from next year it will exclude state-backed cyber-attacks from cyber insurance policies.
Increased risk
The move follows an increased risk of cyber-attacks emerging from the conflict in Ukraine.
Cyber cover has been an emerging business line in the marine insurance markets following an obligation on owners to adopt cyber security measures under the International Safety Management Code.
But from next year, Lloyd’s underwriters will no longer accept liability for losses arising from a state-sponsored cyber-attack.
