Lloyd’s Posts $2.78 Billion 2008 Profit

Lloyd’s announced an overall profit for 2008 of £1.899 billion ($2.78 billion), a 50 percent drop from the £3.846 billion ($5.64 billion) it posted in 2007, but given current economic conditions, a satisfactory result.

Lloyd’s announcement also highlighted the following:
— Combined ratio of 91.3 percent (2007: 84.0 percent) compares favorably with an estimated average of 101 percent for US property and casualty insurers, 102 percent for US reinsurers, 97 percent for European insurers and reinsurers and 92 percent for Bermudian insurers and reinsurers;
— central assets increased to £2.072 billion [$3.04 billion] (2007: £1.951 billion [$2.861 billion]);
— investment return of £957 million [$1.403 billion] (2007: £2.007 billion [$2.943 billion]);
— profit before tax excluding currency movements on non-monetary items of £1.529 billion [$2.242 billion] (2007: £3.846 billion [$5.639 billion); and
— surplus on prior years’ reserves of £1.265 billion [$1.855 billion] (2007: £856 million [$1.255 billion]).

Lloyd’s Chairman Lord Peter Levene commented: “Amidst the unprecedented slump in the world economy, Lloyd’s remains in good shape. The market has inevitably been impacted by significant claims from natural catastrophes, lower insurance rates and a reduction in investment income but this has been partially offset by currency movements and prior year surpluses.

“Our focus on risk management and underwriting discipline has been fundamental to the market’s resilience and it will stand us in good stead as we look to the opportunities and the challenges that the future brings.”

CEO Richard Ward added: “In these testing times, it will be those businesses with clarity of vision and purpose that will stand the best chance of success. From a solid base, Lloyd’s is seeking to further improve its competitive position and develop a truly modern and sustainable marketplace.

“As we move into 2009, it is more important than ever that we continue to improve our service to our customers, enhance our partnership with the market and continue to monitor the shifting global landscape so we are prepared to create and take advantage of opportunities as they arise.”

Source: Lloyd’s – www.lloyds.com