Page 17 - Insurance Times April 2023

pay shareholders a dividend of €11.60 context, business with non-significant been selected to form the next cohort
per share for the 2022 financial year, risk transfer (fee income) in particular of the Lloyd's Lab, beginning on 24
this would constitute an increase of performed very favourably. COVID-19- April 2023. Each of the teams chosen
5.5%. At the end of the year, after related expenditure fell year on year impressed an expert panel of Lloyd's
making the customary deduction for to €344m (797m). and market stakeholders participants.
the proposed dividend, the solvency
Property-casualty reinsurance contrib- For the 10th Cohort, the InsurTechs
ratio was approximately 260% (31
uted €1,856m (2,003m) to the 2022 have been selected based on solutions
December 2021: 227%), and was thus
result. Premium volume grew robustly geared towards three themes: Euro-
also at a high level.
to €34,399m (28,793m). Despite high pean Digital and Climate Solutions;
The operating result for the 2022 busi- natural catastrophe losses in the mar- Data and Models; and New Products.
ness year amounted to €3,582m ket, the combined ratio decreased to Throughout the ten week programme,
(3,517m), while the other non-operat- 96.2% (99.6%) of net earned premi- teams will develop their products with
ing result amounted to -€81m (-91m), ums. the support of market experts and ex-
the currency result rose to €676m plore how their innovations can sup-
Major losses of over €10m each to-
(262m), and the effective tax rate was port the Lloyd's market.
talled €4,173m (4,304m) for the full
14.5% (15.9%). At €21,202m, equity This year for the first time, to increase
year, and €615m (1,006m) for Q4.
was down from the level at the start collaboration between London and
These figures include gains and losses
of the year (€30,945m), mainly due to European Insurtech sectors, the Lloyd's
from the settlement of major losses
a decline in valuation reserves on fixed- Lab has introduced a region-specific
from previous years. Major-loss expen-
interest securities. The latter was at- theme, with four of the 13 successful
diture corresponded to 12.8% (16.5%)
tributable to higher interest rates - of net earned premiums, and was thus teams addressing European Digital and
which are ultimately economically ad- Climate Solutions.
slightly below the long-term average
vantageous for insurers.
expected value of 13%. Man-made
The reinsurance field of business con- major losses amounted to €1,742m Climate change making
tributed €2,593m (2,328m) to the con- (1,165m). The increase was due in part
Earth 'uninhabitable'
solidated result in the 2022 financial to expenditure related to the war of
aggression in Ukraine totalling €475m. Guterres warns
year, and €1,393m (734m) in Q4. Re-
insurance was thus well able to absorb Major-loss expenditure from natural "Every year of insufficient action to
catastrophes amounted to €2,430m keep global warming below 1.5 de-
the expenditure for Hurricane Ian in
(3,139m). The costliest natural catas- grees Celsius drives us closer to the
Q3 and the lower investment result,
trophe for Munich Re in 2022 was brink, increasing systemic risks and re-
and - with further increased profitabil-
Hurricane Ian, with losses of around ducing our resilience against climate
ity of the business - slightly surpassed
€1.6bn. catastrophe", said Secretary-General
its adjusted profit guidance of €2.5bn.
AntónioGuterres.
The operating result amounted to
€2,574m (2,696m). As expected, gross Lloyd's Lab announces 13 Climate change is intensifying
premiums written increased signifi- heatwaves, droughts, flooding, wild-
InsurTechs joining first ever
cantly, to €48,075m (41,354m) as a fires and famines, he warned, while
result of our growth strategy in an European-focused cohort threatening to submerge low-lying
improved market environment and Lloyd's, the world's leading market- countries and cities as sea levels rise
due to positive currency translation place for corporate, commercial and due to melting glaciers and increas-
effects. speciality risk announced the 13 ingly extreme weather.
InsurTech firms joining the 10th cohort
Life and health reinsurance business The combined impact of this will be to
of its innovation hub, the Lloyd's Lab,
generated a profit of €737m (325m) in drive yet more species to extinction,
following a competitive pitch process Mr.Guterres said.
2022. Premium income rose to
where they presented innovative insur-
€13,676m (12,561m). The technical This year's theme, The Future of
ance solutions for the market.
result, including business with non-sig- Weather, Climate and Water Across
nificant risk transfer, rose markedly to The global accelerator programme Generations "compels us all to live up
€918m (218m) [the target was raised received over 200 applications from 32 to our responsibilities" to future gen-
in Q3 from €400m to €800m]. In this countries, of which 13 teams have erations, he added.

The Insurance Times April 2023 15