A new report by Standard and Poor’s says the expansion of London-based insurance business is mostly taking place at Lloyd’s of London.
The report, Insurance Market Profiles, says that, although the London market continues to attract new players and is viewed by global players as an important place to operate, “most of the new capacity is headed for Lloyd’s.”
Referring to the profitability of Lloyd’s versus companies since 1992, the report said “the striking difference between Lloyd’s and companies is the benefit Lloyd’s derived from addressing its problems in 1992. Company results in 1998 continued to be eroded by reserve deterioration on asbestos, pollution and health hazard and London Market Excess of Loss spiral.”
S&P’s director of insurance ratings, Rob Jones, said the London market is slowly becoming Lloyd’s.
“The companies sector has dwindled somewhat. Lloyd’s is probably the strongest global brand you will come across. Its network of licences across the world is second to none, and the back office support that Lloyd’s provides enables syndicates to set up on a very low cost base,” Jones said. “Most global groups have some degree of interest at Lloyd’s which they may increase over a period of time.”
Was this article valuable?
Here are more articles you may enjoy.