© Lloyd’s 1

The approved

2021 business

& capital plans

at Lloyd’sDelivering plans that are logical, realistic and achievable

© Lloyd’s 2

AgendaThe approved business and capital plans

1Opening remarks

John Neal, CEO

2Approved business plans for 2021

Tony Chaudhry, Head of Performance Management

3How do we differentiate plans?

Kirsten Mitchell-Wallace, Head of Portfolio Risk Management

4Capital at Lloyd’s

Burkhard Keese, CFO

5Reflections on this year’s process and priorities for 2021

Peter Montanaro, Head of Market Oversight & Delivery

6Closing remarks

John Neal, CEO

7 Q&A

© Lloyd’s 3© Lloyd’s 3

Opening remarksJohn Neal Chief Executive Officer

© Lloyd’s 4

Significant improvement in performance since 2018

Performance remains our number one priorityProfit first, then growth

Four consecutive years of rate increaseUptick in rate through 2020

Improvement in underlying resultAs evidenced by attritional loss ratio

Focus on sustainable, long-term profitabilityTaking account of current market conditions

© Lloyd’s 5

COVID-19 will continue to impact 2021 performance

A tough year for our people, customers and industry

2020 premium shortfall likely to continue in 2021

Positive rate and retention, but lower new business flows

Q1 review of all 2021 business plans

© Lloyd’s 6© Lloyd’s 6

Approved business plans for 2021Tony ChaudhryHead of Performance Management

© Lloyd’s 7

What we said back in July…

Logical: executing the right performance actions

Realistic: key assumptions take account of current conditions

Achievable: capability and track record to deliver the plan

© Lloyd’s 8

And we took a more differentiated approach to planning

26%

of syndicates

24%

of syndicates

50%

of syndicates0%

<100%

twice or

three times

<100%

once or

less

Hit plan once or less Hit plan twice or three times

Normalised* NCR vs plan, 2017-19

No

rma

lis

ed

* N

CR

vs

10

0%

, 2

01

7-1

9

*Normalised calculation is an adjustment applied for long-term average catastrophe claims

© Lloyd’s 9

What are the outcomes of 2021 planning?

Strong improvement in net combined ratio✓

Growth in the best classes, improvement in the worst✓

A smoother planning process✓

Capital responds to risk profile ✓

© Lloyd’s 10

£38.7bn£36.4bn

£41.2bn

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

£0.0bn

£10.0bn

£20.0bn

£30.0bn

£40.0bn

£50.0bn

2020 plan 2020 2021 plan

Retention New Business NCR

New business plans are ambitious due to 2020 shortfall

Higher

retention

and rate

ahead of

plan

New

business

behind

plan

Planned improvement

on net combined ratio

© Lloyd’s 11

12.8% 12.3% 12.4% 11.6%

26.5% 25.9% 26.0% 25.0%

39.2% 38.2% 38.1% 36.7%

£9.9bn £10.5bn £9.8bn£11.1bn

£25.2bn£27.5bn

£25.6bn

£30.2bn

-£25.0bn

-£15.0bn

-£5.0bn

£5.0bn

£15.0bn

£25.0bn

£35.0bn

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

2019 2020 plan 2020 2021 plan

Net admin Net acquisition Net operating expenses NWP

12% increase in operating expenses is unsustainable

£1.3bn increase

on expenses has

a 4.4% impact on

combined ratio

© Lloyd’s 12© Lloyd’s 12

How do we differentiate plans?Kirsten Mitchell-WallaceHead of Portfolio Risk Management

© Lloyd’s 13

A targeted approach to portfolio management

Light Touch

High Touch

Standard

Protect and grow

Improve or remove

Grow the best performers

Shrink the poorer performers

45%

29% 27%

30%

39% 39%

19%24% 25%

6% 8% 9%

2019 2020 2021 plan

New Syndicates

© Lloyd’s 14

More growth approved for Light Touch syndicates

49%

72%123%

51%

28%

-23%

Light Touch Regular High Touch

rate exposure

18%

12%

6%

Light Touch Regular High Touch

Planned GWP growth Rate vs exposure growth

Standard

Standard

© Lloyd’s 15© Lloyd’s 15

Capital at Lloyd’sBurkhard Keese Chief Financial Officer

© Lloyd’s 16

Movement in capital is driven by a combination of planned growth and impact of COVID-19

£1.8bn

£1.3bn

£500m£1.3bn

£20.6bn

£23bnLoadings

Loadings

18,000

19,000

20,000

21,000

22,000

23,000

24,000

25,000

2020 capital Exposure growth COVID-19 impact Risk change Improvedprofitability

2021 capital

£m

© Lloyd’s 17

Capital planning improves through 2020 and into 2021

Effective collaboration after July market message and COVID-19 guidance

Higher quality capital plans submitted, resulting in faster approval

Capital plan process for 2022 will be principles-based

Revision of Lloyd’s capital rules and technology (Investcloud)

© Lloyd’s 18© Lloyd’s 18

Reflections on this year’s process and priorities for 2021Peter Montanaro Head of Market Oversight and Delivery

© Lloyd’s 19

This year’s process has run to timetable

© Lloyd’s 20

2021 priorities

© Lloyd’s 21© Lloyd’s 21

Closing remarksJohn Neal Chief Executive Officer

© Lloyd’s 22

Improved underlying performance in a challenging environment, but we must hold our nerve

© Lloyd’s 23

This information is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such

distribution or use would be contrary to local law or regulation. It is the responsibility of any person publishing or

communicating the contents of this document or communication, or any part thereof, to ensure compliance with all

applicable legal and regulatory requirements.

The content of this presentation does not represent a prospectus or invitation in connection with any solicitation of capital.

Nor does it constitute an offer to sell securities or insurance, a solicitation or an offer to buy securities or insurance, or a

distribution of securities in the United States or to a U.S. person, or in any other jurisdiction where it is contrary to local law.

Such persons should inform themselves about and observe any applicable legal requirement.

Disclaimer