Lloyd’s Posts $2.215 Billion 1st 6 Months Profit; Investment Returns Down

Lloyd’s announced a profit of £1.38 billion [$2.215 billion] for the six-month period ending 30 June 2013. “The market continued to grow with gross written premium increasing 4.9 percent to £15.5 billion [$24.88 billion],” said the announcement.

“Despite a benign first half of the year for natural catastrophes, with no major claims for the Lloyd’s market, total net claims were £4.85 billion [$7.785 billion]. Continued challenging economic conditions significantly impacted investment returns which fell to £247 million [$396.5 million],” compared to £619 million [$993.6 million] in the first half of 2012.

Chairman of Lloyd’s, John Nelson, said: “This is a good result for the Lloyd’s market, although the volatility of the insurance business means that we must remain cautious about how the full year result will turn out.

“In spite of the difficult economic conditions, it is pleasing to see the Lloyd’s market grew by almost five per cent in the first half of the year. It shows that disciplined underwriting can co-exist with growth which is vital as we seek to capitalize on the opportunities presented by the Asian and Latin American economies in particular.”

Lloyd’s CEO, Richard Ward, added: “This is a solid result for the market in a difficult economic environment, and demonstrates the market’s disciplined approach to underwriting.
The Lloyd’s market is in robust financial health, supported by its strongest ever financial ratings.”

“When I step down as Lloyd’s CEO at the end of the year, I am pleased that I will be leaving the market in an excellent position to pursue its vision to be the global center for specialist insurance and reinsurance.”

Source: Lloyd’s of London