Is the difficulty in launching a new Lloyd's fund down to focusing on the wrong aspect?
Understanding (re)insurance portfolio valuation in real time
How follow only strategies can model data to improve outcomes
The Lloyd’s Market Association (LMA) and Insurance Capital Markets Research (ICMR) publish a detailed analysis and comment on the Lloyd's results
It is the first time in the last decade that Lloyd’s has, in the aggregate, exceeded its estimated weighted average cost of capital (WACC)
With risk free rates at decade long highs, investment contribution is now a critical component of returns on equity
From the novelty of dedicated syndicates to BaU
Building a superior follow-only portfolio through class of business performance analysis
ICMR analysis shows (re)insurer P/b’s close to long term highs, but still relatively undervalued
As follow-only strategies gain momentum at Lloyd’s, how do you identify consistent gross outperformance?
Line of business performance data from multiple years of individual syndicate reports and accounts, captured and curated by ICMR, reveals a surprising dichotomy between gross and net underwriting performance
Lloyd’s stated year-on-year rate improvement not reflected in reported loss ratios
Using the reported data of the RISX index constituents ICMR forecasts Lloyd’s will report best underwriting result since 2014
Successful leaders and smart follow-onlys likely to benefit at the expense of a middle market squeeze
Are follow-only strategies a smart alternative to the model of value through verticalisation?
Successful follow-only strategies can create more value than those of traditional leadership roles
ICMR’s mark-to-model valuation for Lloyd’s investments
To assess whether investments in Lloyd’s are worthwhile, investors’ expected returns must be compared against the weighted average cost of capital (WACC).
Those two simple questions motivated our research into how capital markets data could be used to provide answers on Lloyd’s valuation and to measure its evolution over time. This culminated in the ICMR RISX index, launched in May 2021.
It’s all about enhancing performance and timing the exit
Specialty (re)insurance is a difficult business to scale
A successful Lloyd’s underwriter is a good sales person first and foremost
Over 2/3 of Lloyd’s syndicates reported an underwriting profit
First look at Lloyd’s 2021 results
ICMR’s estimate is based on the aggregated combined ratio of the RISX equity index constituents.
RISX index suggests tidy return for Ascot’s investors
This article outlines some of the drivers behind the creation of the RISX index
ICMR launches innovative new ‘(re)insurance specialty equity index’ and selects Moorgate Benchmarks as its administrator
With improving performance and an expanding range of options for investing, now may well be the best time for some while to be an investor at Lloyd’s.
Despite of another loss making year at Lloyd's, signs of a hardening market are becoming visible
The market is buoyant about near term underwriting conditions, but just how important are they to cross-cycle value creation compared to the performance of asset managers?
Was it worth it? Time will tell.
ICMR.Matrix; a new tool to assess which syndicates are best placed to win the race for more new business
Research by ICMR shows that comparing stock performance of specialty re/insurance companies with the S&P 500 can provide new insight into the state of the insurance cycle
For the first time investors can review Lloyd’s syndicates’ return on capital and compare them directly with other re/insurers.
Lloyd's wrote £448bn of gross premiums since 2000, incurring gross claims to policyholders of £288bn, delivering a net combined ratio of 98% and generating £20bn for its investors. What happened?
Maintaining performance is one thing, improving performance is a lot more challenging
Only top quartile and very few second quartile performers achieved underwriting profits in 2019.
Materials from the cancelled joint LMA event 18 March 2020
You don't have to be big to be successful, but you can get big if you are successful.
In 2019 there were 110 syndicates, including special purpose arrangements (SPA), of which 105 stated positive GWP, with 56 breaking even or generating a profit.
Today Lloyd's released the 2019 pro-forma results for the market stating a profit of £2.5bn. This is a huge improvement to last year's loss of £1bn, but is driven by investment income of £3.5bn
On 18 March together with the LMA we are organising a panel discussion on the topic of 'Value Creation at Lloyd's'
Introducing the London Insurance Market Index