Meet the Lloyd s Market in Atlanta Download the Lloyd s Meet the Market mobile app at eventmobi.com/lloydsatlanta US offices Atlanta I Boston I Chicago I Frankfort, KY I Los Angeles I New York I USVI Global offices Africa I Asia-Pacific Europe Middle East I North America South America Lloyd s
. What is Lloyd s? 2. Financial Results 3. Chain of Security 4. Lloyd s in the US 5. What can be insured at Lloyd s? 2 2 Lloyd s 2
What is Lloyd s? Lloyd s 3
The best known, least understood brand in (re)insurance Lloyd s 4
Lloyd s key characteristics Lloyd s key characteristic s Lloyd s is a market, not a company We have a long history of helping clients manage risk taking, dating back to 688 The Lloyd s market insures complex and specialist risks London based international business Lloyd s expertise is based on 327 years of experience and a Performance Management Directorate that oversees responsible risk taking Regulated by the Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA) Products are distributed through brokers and coverholders Lloyd s 5
Footprint of the business 96 syndicates of specialist underwriting expertise 3872 coverholders offering a local route to Lloyd s 29 brokers bringing business from 200 countries and territories for over 327 years of underwriting experience Lloyd s 6
The world s leading specialist (re)insurance market Lloyd s 7
The Lloyd s market: 58 managing agents manage 96 syndicates Lloyd s is a marketplace of independent businesses whose combined experience and expertise deliver risk transfer solutions to an increasingly complex world. Lloyd s 8
Business streams at Lloyd s Business flow Capital flow Corporation of Lloyd s (Re) Insured Reinsurance broker Retail broker Coverholder/ Wholesale broker Lloyd s broker 58 Managing agents 96 Syndicates Members Corporate and Non-corporate Lloyd s 9
Lloyd s + London Company Market = Total 203 premium of US$83.62bn Overall London company market US$40.29bn US$43.33bn Source: IUA, London Company Market Statistics Report, October 204 Exchange rate as at 3 December 203 - + $.66 Lloyd s 0
Lloyd s syndicates - backed by some of the best known names in global insurance Lloyd s syndicates backed by some of the best known names in global insurance Individual members (limited liability) 9% Individual members (unlimited liability) 2% Worldwide insurance industry 24% UK insurance industry and other corporate 30% Bermudian insurance industry 3% US insurance industry 22% Source: Lloyd s Annual Report 204 Lloyd s
Lloyd s global reach 5% 8% % 44% Source: Lloyd s Annual Report 204 4% 8% Lloyd s 2
Financial Results < Picture to go here > Lloyd s 3
A five year view of Lloyd s performance US$m 200 20 202 203 204 Gross written 34,759 37,339 40,025 39,959 4,77 premiums 22,425 23,337 25,73 25,65 25,283 Combined ratio 93.3% 06.8% 9.% 86.8% 88.% Investment return,950,528 2,084,309,724,258 955,3 839,045 Result before tax 3,446 (800) 4,57 5,320 4,93 2,95 ( 56) 2,77 3,205 3,6 Return on capital (pre-tax) % 2. (2.8) 4.8 6.2 4.7 Source: Lloyd s Annual Report 204 Lloyd s 4
Lloyd s outperforms competitor group Combined Ratios % 0 05 02. 05.7 06.8 00 96.7 95 90 93.3 9. 93.3 93. 86.8 88. 85 80 75 70 200 20 202 203 204 Competitor group Lloyd's Source: Lloyd s pro forma financial statements, 3 Dec 204; competitor group formed of companies operating in US, European and Bermudan markets. These companies are Ace, AIG, Arch, Everest Re, Hannover Re, Mapfre, Munich Re, Partner Re, SCOR, Swiss Re, XL. Lloyd s 5
Lloyd s Chain of security - taking a closer look 6 Lloyd s 6
Lloyd s unique 3 tier capital structure Lloyd s unique capital structure, often referred to as the Chain of Security, provides excellent financial security to policyholders and capital efficiency to members. Several assets First link Syndicate level assets $70,47m Members premium trust funds and other assets held in trust at syndicate level. All premiums received are held in trust. Include international regulatory deposits and trust funds. Second link Members funds at Lloyd s $24,498m Each member must provide sufficient capital to support their underwriting. Amounts required are calculated through syndicate individual capital assessment (ICA). Funds are held in trust for the benefit of policyholders. Mutual assets Third link Central assets $5,237m Available to meet any valid claim that cannot be met from a member s resources in the first two links. Include the Central Fund, funded by members annual contributions and funds issued by the Corporation of Lloyd s Source: Lloyd s Annual Report 204 Lloyd s
Lloyd s ratings Three of the world s leading rating agencies validate Lloyd s robust capitalisation and the market s financial strength. As all Lloyd s policies are backed by mutual security, the following ratings apply to the entire market. Source: Lloyd s Annual Report 204 Lloyd s 8
Lloyd s in the US < Picture to go here > Lloyd s 9
Lloyd s in the US a major player Lloyd s is eligible to write surplus lines (E&S) and is an accredited reinsurer in all US jurisdictions. In 204, the market holds its # and # 2 positions in these segments, respectively. Underwriters at Lloyd s are licensed insurers in Illinois, Kentucky and the US Virgin Islands only. Lloyd s 20
Breakdown of Lloyd s 204 total US business Lloyd s 2
Lloyd s 204 E&S Premium PA & Health 5% Motor 3% Aviation % Marine & Energy 6% Total E&S US$ 9.bn Property 50% Liability 25% Aviation Marine & Energy Liability Motor PA & Health Property Source: Lloyd s US Reporting System, (205) Lloyd s 22
Lloyd s 204 Southeast Region E&S Premium in million US$,200,000 800 Total Southeast E&S US$.9bn 3 - - 0 5 3 3 2 9 3 4 5 8 3 4 5 6 4 6 2 2 4 5 6 6 3 9 2 8 2 9 6 5 4 5 600 400 200 0 FL SC GA NC VA AL MS Aviation Marine & Energy Liability Motor PA & Health Property Alabama (AL), Florida (FL), Georgia (GA), Mississippi (MS),North Carolina (NC), South Carolina (SC), Virginia (VA) Source: Lloyd s US Reporting System, (205) Lloyd s 23
204 GSP ( USD m) Lloyd s E&S Top 0 states Lloyd s share of the E&S market in TX, CA, FL, LA, NJ, MA, SC and GA ranges from 20 37%. Catastrophe capacity provided by Lloyd s fills a critical need in these states. 204 Lloyd s Market Share of E&S Premium by State 30% 20% 22% 8% 26% 22% 25% 37% 22% 3% Property Energy Liability Prop + Liab Please Note: These figures do not include Reinsurance premiums Premiums are in GSP (Gross Signed Premiums) as registered by the US reporting system in 203 Source: Market Intelligence based on SNL financial and Lloyd s US reporting system (May 204) Lloyd s 24
What does Lloyd s America do? < Picture to go here > Lloyd s 25
Lloyd s US regional structure Your key contacts Locations Atlanta, GA 2 Boston, MA 3 Chicago, IL 4 Frankfort, KY 5 Los Angeles, CA 7 Pat Talley Central Regional Director Frankfort, KY/ Chicago Hank Watkins President, North America New York Joseph Gunset General Counsel, US New York Kiran Bhovan Senior Manager Comms London 6 7 New York, NY US Virgin Islands 9 3 0 - - 5 9 3 4 5 5 64 5 4 6 28 39 4 5 65 23 23 5 Glenn Dorr Northeast Regional Director Boston Rich Magrath Western Regional Director Los Angeles 0-3 2 8 34 6 22 24 39 6 23 Rodney Smith Southeast Regional Director Atlanta 32 colleagues Hank Feuerzeig General Representative US Virgin Islands Lloyd s 26 26
What can be insured at Lloyd s? < Picture to go here > Lloyd s 27
The Lloyd s market is known for its specialist expertise Lloyd s 28
and an appetite for unusual risks requiring innovative solutions Lloyd s 29
Let s go shopping! < Picture to go here > Lloyd s 30
Lines of business expertise in the room today Accident & Health Aerospace & Aviation Binding Authorities Bloodstock Builders Risk Casualty Catastrophe Exposed Property Construction Contingency Risks Crisis Management Crop Cyber Risks Engineering Environmental Facultative Risks Financial Institutions Fine Arts & Specie Healthcare Kidnap and Ransom Liability Management Liability Marine Cargo Mortgage Impairment Lender Placed Foreclosed Property Motor Truck Cargo Offshore & Onshore Energy Personal Accident Political Risk & Trade Credit Professional Liability Property Proportional Reinsurance Terrorism Transactional Liability (M&A) Lloyd s 3
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Thank you! T Stay in touch. Email rodney.smith@lloyds.com Website lloyds.com/america lloyds.com/linkedin @lloydsoflondon facebook.com/lloyds