Lloyd’s conservative management, combined with a notable lack of major natural catastrophes, has resulted in a £1.32 billion ($2.18 billion) pretax profit for the first half of 2009, compared to £949 million ($1.54 billion) in the same period for 2008.
Other highlights reported by Lloyd’s were as follows:
– Combined ratio of 91.6 percent (June 2008 89 percent). Lloyd’s noted that the figure “continues to compare well with our peers who recorded an estimated average of 100 percent for US property & casualty insurers (June 2008 99 percent); 94 percent for US reinsurers (June 2008 98 percent); 84 percent for Bermuda (June 2008 86 percent); and 99 percent for European insurers and reinsurers (June 2008 96 percent).”
– Investment return £708 million (US$1.17 billion) (June 2008 £346 million [$560 million])
– Central assets of £2.0 billion (US$3.3 billion) (June 2008 £1.9 billion [$3.07 billion])
Lloyd’s Chairman, Lord Levene, commented: “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.”