Lloyd’s first half profits up 40%. Lloyd’s has reported a 40% increase in first-half profits to £1.32bn, which it attributed to a combination of a stable underwriting performance and a “modest rebound” in investment returns.
Highlights
- Profit before tax of £1.32 billion (June 2008 £949 million)
- Combined ratio of 91.6% (June 2008 89%) continues to compare well with our peers who recorded an estimated average of 100% for US property & casualty insurers (June 2008 99%) (i); 94% for US reinsurers (June 2008 98%) (ii); 84% for Bermuda (June 2008 86%) (iii); and 99% for European insurers and reinsurers (June 2008 96%)
- Investment return £708 million (June 2008 £346 million)
- Central assets of £2.0 billion (June 2008 £1.9 billion)
Lloyd’s, the world’s leading specialist insurance market, today announced an interim profit before tax of £1.32 billion for the six month period ending 30 June 2009 (£949m, June 2008). The result reflects continuing underwriting discipline and a relatively low level of catastrophe claims.
A conservative investment mix has resulted in a positive return of £708 million during a period of continuing volatility in financial markets.
Lloyd’s Chairman, Lord Levene, said:
“The first six months result has been achieved in what remain challenging circumstances. The market is in solid financial shape and business volumes have increased as a result of brokers and policyholders seeking to use the security of the Lloyd’s platform.”
“External conditions, however, remain difficult with the US windstorm season and recessionary trends continuing to pose a threat to the insurance industry.”
Lloyd’s Chief Executive Richard Ward added:
”Lloyd’s prudent and conservative approach has ensured that our capital position and ratings remain strong. While we are well placed to take advantage of opportunities through the market’s wide product range and distribution channels, our focus must remain on underwriting profitability.”
