John Neal, Chief Executive Officer (CEO) of the specialist Lloyd’s insurance and reinsurance marketplace, said earlier today that there’s no reason for price to significantly change, and that the market still sees the makings of a super cycle amid stable underwriting and capital conditions.
After releasing an impressive set of results for the first half of 2024, Lloyd’s executives discussed the market’s performance and broader insurance and reinsurance sector conditions.
“Market conditions remain broadly favorable, and we continue to see both positive trends across most lines of business, and the makings of a super cycle based on a protracted period of stable underwriting and stable capital conditions,” said Neal.
Expanding on his super cycle comment, Neal noted that it’s been five years of hard work to get to where the market’s at, with many in the industry reflecting on price, price adequacy, attachments, terms and conditions, and beyond.
“So, we see no evidence of significant change in the marketplace, either from the insurance or the reinsurance community,” added Neal.
The CEO stressed that it’s not been easy for the re/insurance space to get to a point where it can convince capital and investors that the industry’s returns are sustainable, meaningful, and consistent.
“But that’s the point we’re at,” said Neal. “So, there is no reason, no reason, for price to significantly change, and we’re not seeing it. Per what we’ve said here, we see price rises at 1.5% through the half year, despite what others are saying. So, our expectation is that this cycle is prolonged.”
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