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Speaker 1: The insurance marketplace. Lloyds of London has reported profit before

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Speaker 1: tax of nine point six billion pounds four last year,

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Speaker 1: den around one point one billion from the previous year.

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Speaker 1: That's as Lloyd's sole insurance premiums rising by six point

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Speaker 1: five percent of those written in the market. This as

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Speaker 1: insurers are looking at how global uncertainty over issues like

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Speaker 1: trade tariffs could affect the insurance market. Joining us now

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Speaker 1: to discuss john Ny l CEO of Lloyds of London,

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Speaker 1: Good morning. Great to see you in the studio with us.

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Speaker 1: I mean, let's talk about the uncertainty picture. So premiums

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Speaker 1: already rising that you've seen the past year, given that

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Speaker 1: we're watching so much changing in the macroeconomic situation, what

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Speaker 1: should be the expectation around premiums for the coming year.

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Speaker 2: Yeah, I think, as you said, I mean you've just

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Speaker 2: referenced our performance. It's strong performance, favorable insurance conditions, which

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Speaker 2: means the price is right if you're selling insurance, and

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Speaker 2: the economic conditions have been good as well. I think,

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Speaker 2: as you've just been describing in the headlines, the world's

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Speaker 2: just a more challenging place for everybody, isn't it. Whether

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Speaker 2: you you know when we look at we look at

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Speaker 2: the creation of protectionism, nationalism, geopolitics.

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Speaker 3: It's just a risk your world.

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Speaker 2: So I think what we've got to do as insurers

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Speaker 2: is just ensure that we can help mitigate, measure, manage price,

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Speaker 2: and ensure risk.

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Speaker 3: I think we've got a really really important job to

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Speaker 3: do at the moment.

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Speaker 4: If there is less global economic growth, and we've seen

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Speaker 4: yesterday the fared downgrade US economic growth, the UK is

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Speaker 4: obviously stagnant. Europe question marks about whether the defense many

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Speaker 4: will increase growth or not. With less growth, does that

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Speaker 4: mean less business?

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Speaker 2: I don't think so. I think it's just as I'm saying,

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Speaker 2: it's just a risk your world, isn't it. You've got

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Speaker 2: financial uncertainty with inflation and interest rates, You've got systemic

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Speaker 2: exposures that we all talk about.

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Speaker 3: You've got war on land, You've got.

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Speaker 2: Climate I think businesses are conscious of the risk and

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Speaker 2: they want to protect either their revenue streams or their

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Speaker 2: balance sheet.

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Speaker 3: And we've got a role to play.

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Speaker 4: There in terms of we've spoken a number of times before,

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Speaker 4: we've talked about that the significant climate change risk, for example,

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Speaker 4: the fact that so many are underinsured. There's now this

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Speaker 4: idea that of cascading extreme events and extreme weather events.

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Speaker 4: Is that going to be a major issue in the

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Speaker 4: year ahead. We've certainly seen it in the past year

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Speaker 4: in the US.

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Speaker 3: I think so.

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Speaker 2: I mean we thought last year, didn't we They were

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Speaker 2: predicting the most active North Atlantic hurricane season on record,

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Speaker 2: and there were five hurricanes that made landfall, two of

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Speaker 2: which we talk about, which is Milton and Helene. They

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Speaker 2: didn't cost as much money as we thought. But dare

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Speaker 2: I say, you know, look at the desperate events in

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Speaker 2: California with the fire. We see fires and flood a

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Speaker 2: lot more than we used to. We understand those risks,

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Speaker 2: we can ensure them. I think we've got a job

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Speaker 2: to do, which we've discussed before, in making sure that

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Speaker 2: we explain the value proposition of insurance because there's no

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Speaker 2: lack of capital or capacity or capability to provide cover.

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Speaker 1: But what about the question of being able to get

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Speaker 1: insurance after these disasters as well? I mean, is that

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Speaker 1: going to be a bigger issue?

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Speaker 2: I think it becomes an issue if we don't take

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Speaker 2: a step back and work out what new form of.

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Speaker 3: Public and private partnership looks like.

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Speaker 2: You know, there is a role in some of the

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Speaker 2: extreme events for government to play, but we should partner

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Speaker 2: with government and work out how can we provide the

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Speaker 2: most complete cover for everybody in these situations. Those conversations

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Speaker 2: are starting to happen. I'm pleased to say.

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Speaker 4: There are worries that about the reinsurance or insurance after

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Speaker 4: such disaster, especially in California. Can you reassure people there

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Speaker 4: that the coverage will be possible.

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Speaker 2: It's very different in the US in terms of the

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Speaker 2: way in which the regulations operate on a state basis

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Speaker 2: versus a federal basis, and the space that we play

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Speaker 2: in is more of a mass market, so called surplus market.

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Speaker 2: We're not restricting the ability to provide cover at all

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Speaker 2: in a state like California and prepared to put our

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Speaker 2: hands up and say how can we help resolve the

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Speaker 2: mitigation of loss at the front end and the protection

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Speaker 2: at the back end. So we're trying to be active

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Speaker 2: in the conversation there. You know, very quickly on the

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Speaker 2: wild I give you an example with fire. As the

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Speaker 2: fire started on the sixth of January, we knew they

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Speaker 2: were going to start on the fourth and we knew

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Speaker 2: where they were going to start, So there is quite

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Speaker 2: smart technology and data now that can really help people

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Speaker 2: manage the loss as well as just the ensuring element

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Speaker 2: of the loss.

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Speaker 1: You've spoken to us before about the broader picture of

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Speaker 1: facing the UK economy as well. I wonder you're leaving

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Speaker 1: your job at Lloyd's of London later this year as well,

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Speaker 1: after seven years a CEO and in such a prominent

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Speaker 1: position in the UK landscape. Are you more optimistic or

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Speaker 1: pessimistic now about the outlook for the UK economy?

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Speaker 2: I feel okay about the UK, you know, I think

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Speaker 2: of all the places to be at present. You know

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Speaker 2: you're talking about to be fair to Trump in the US,

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Speaker 2: he did say exactly what he was going to do,

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Speaker 2: so there's no surprises there.

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Speaker 3: Europe feels a tough place to be at the moment,

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Speaker 3: doesn't it. Genuinely.

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Speaker 2: I think we've got a government that's trying to make

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Speaker 2: medium to long term decisions for the benefit of the economy,

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Speaker 2: to create jobs and promote growth.

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Speaker 3: That feels okay.

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Speaker 4: Do you think that? Do you feel that the labor

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Speaker 4: government is as pro businesses lists these business as much

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Speaker 4: as perhaps you did before the general election? Again, when

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Speaker 4: we spoken, you were very positive about the idea of

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Speaker 4: having stability and having two term government. There has been

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Speaker 4: great disappointment at LIASA, a huge trough in consumer and

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Speaker 4: business sentiment in the months and the weeks after the

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Speaker 4: last budget, and now we've got to spring statement in

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Speaker 4: a couple of weeks.

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Speaker 2: I think it's been tricky for them, isn't it, you know?

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Speaker 2: And I think we've just got to show a little

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Speaker 2: bit of patience. You know, it needs a bit of time.

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Speaker 2: You know, there isn't a sense. I think you do

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Speaker 2: get a sense that they respect who they are as

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Speaker 2: a labor government. They've got obvious obligations to those that

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Speaker 2: voted for them, and I think they are trying to

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Speaker 2: make some longer term decisions.

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Speaker 3: So that's the way I look at it.

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Speaker 1: Do you think that the rest of the business community

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Speaker 1: is as forgiving? No.

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Speaker 2: I think I think we're all a little impatient these days,

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Speaker 2: aren't we. And I think we've got to think a

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Speaker 2: little bit differently when you think of the issues to solve,

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Speaker 2: and we spoke, we've spoken about that before, you know,

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Speaker 2: whether it's health at one end of the spectrum, or

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Speaker 2: education or the way we look after those in society

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Speaker 2: the greatest need we've got to do all of those things.

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Speaker 2: But you can't fix those issues in six months, twelve

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Speaker 2: months or twenty four months. They are long term issues

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Speaker 2: that need smart, committed resolution. And you know, I think

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Speaker 2: again Dora Saiitor's insurance, we can help with that. You know,

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Speaker 2: if even a government feels that something will interrupt its

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Speaker 2: ability to commit to spending is always ensurable.

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Speaker 3: We can lean in help on those conversations.

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Speaker 4: One question about the things that maybe you're handing over

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Speaker 4: to the next CEO, things that remain maybe unresolved at

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Speaker 4: Lloyd's Land, I mean the IT upgrade and so on. Sure,

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Speaker 4: if there was something that you could say about handy

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Speaker 4: over that business to the next leader, you know what's

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Speaker 4: going to be the biggest difficulty.

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Speaker 2: I think, you know, I genuinely think you handing over.

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Speaker 2: I think performances in good shape. As we've discussed digital journey,

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Speaker 2: like any digital transformations being hard yurs, but is genuinely happening.

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Speaker 2: And I think we've got a voice that's valued. So

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Speaker 2: I think it's the classic, isn't it. Talk to your stakeholders,

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Speaker 2: listen to what they think they need, and act accordingly.