Lloyd’s 2007 profits total £3.8 billion

by David Masters

Story link: Lloyd’s 2007 profits total £3.8 billion

Lloyd’s has reported its 2007 results, with profits of £3.8 billion and a combined ratio of 84%.

The group’s central assets increased by 34% to £1,951 million, whilst investment return was up 21% at £2,007 million. Surplus reserves of £856 million were also able to be released.

Lord Levene, chairman of Lloyd’s, said: “2007 was another profitable year for Lloyd’s, with the market reporting a £3.8bn profit and continuing to outperform its major international peers.

“Lloyd’s benefited from a limited exposure to catastrophes but this has resulted in increased pressure on rates across all lines of business. The need to exercise underwriting discipline and maintain a focus on underwriting for profit rather than market share remains essential.”

Chief executive Richard Ward added: “Last year’s softening market conditions reinforced, once again, the need for a clear strategy to enable the market to maintain discipline and strength in the face of increasing competition.

“As a marketplace we have a responsibility to our policyholders and to ourselves to ensure that we maintain our financial strength and security throughout the course of a cycle.”