Guy Carpenter notes that the economic slowdown continues to negatively affect Lloyd's investment return, which fell to £955 million ($1.54 billion) in 2011, down from £1.2 billion ($1.9 billion) in 2010.

Lloyd's 2011 combined ratio jumped to 106.8 percent from 93.3 percent in 2010 due to loss events beginning with the Australian floods and then continuing with the New Zealand and Japanese earthquakes, U.S. tornado losses and floods in Thailand.

Gross written premiums in 2011 rose to £23.4 billion ($37.8 billion), an increase of 3.9 percent compared to the previous year. The main drivers of this growth were the reinsurance and marine classes.

Despite the losses of 2011, the underwriting performance was relatively strong, Guy Carpenter says. An excess of capital in property and casualty subdued pricing pressure in most lines, and combined ratios were suppressed across all classes (except auto) by prior-year reserve releases.

To remain competitive, Guy Carpenter says Lloyd's has launched a long-term strategy titled “Vision 2025.”

The strategy calls for Lloyd's to “consolidate its presence in established markets while leveraging its existing structure and strengths to facilitate rapid, yet targeted growth across diverse emerging economies.”

The move is aimed at producing a “diversified capital base and promote disciplined international expansion within its underwriting community.”

Lloyd's will also target growth in Southeast Asia, Eastern Europe and Latin America.

“Now, perhaps more than ever, it is essential to balance this need for growth and diversification while diligently managing risk,” says Day. “The Vision 2025 plan provides a clear roadmap for Lloyd's to leverage its existing structure and strengths to break through to a new frontier of diverse emerging economies.”