Lloyd’s is the world’s largest subscription market and covers risks in more than 200 countries and territories worldwide. About three-quarters of Lloyd’s business is currently centered in the established markets of the United States, Canada, the United Kingdom and Europe. As discussed, Lloyd’s aims to consolidate its business in these territories while it pursues the long-term vision of expanding its presence in countries and territories such as China, Latin America, India and the Middle East.
The majority of Lloyd’s business is in direct insurance. Despite specializing in property catastrophe insurance and reinsurance, Lloyd’s is a strong competitor in marine, energy, aviation and specialty markets. Thirty-eight percent of its business is in reinsurance. Lloyd’s is the fifth-largest property and casualty reinsurer in the world and the largest surplus lines insurer in the United States.
Lloyd’s enjoys a strong and unique global brand. It draws its strengths from a number of sources, including the broad international access it provides to its members. In addition, Lloyd’s has maintained a strong reputation through its underwriting expertise and solid market-wide financial strength ratings. Because of its diversification and the partial mutualization of the marketplace, Lloyd’s capital requirements are low.
These are some of the characteristics that have been sufficient to maintain the historical flow of attractive and diverse specialty business to Lloyd’s, despite intense competition from other international insurance markets (particularly Bermuda). These characteristics have also ensured that capital providers remain committed to Lloyd’s, and such loyalty has been amply demonstrated in the aftermath of recent major loss events.