Lloyd’s profit surges almost 40%
Lloyd’s of London has reported a jump of almost 40% in half-year profit, despite “turbulent financial markets and challenging insurance conditions”.
Robust underwriting results and a modest rebound in investment returns fuelled the surge, allowing the market to post pre-tax earning of £1.32 billion for the first six months of 2009, up from £949 million a year earlier.
Underwriting profit remained level at £678 million, helped by the lack of any major catastrophes in the first half.
Investments produced a “modest” return of 1.6%, reflecting low interest rates and yields, but nevertheless bringing in £708 million, or more than double the return made in the first six months of 2008.
Gross written premium for the period stood at £13.5 billion, up by over a third on the first half of last year; both a weaker dollar and increasing demand from international clients supported the rise.
The combined ratio of the market rose to 91.6%, up from 89% last year.
Commenting on the performance, Lloyd’s chairman, Lord Levene, says: “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.”
He also cautioned “External conditions, however, remain difficult with the US windstorm season and recessionary trends continuing to pose a threat to the insurance industry.”
Category: Companies News, Financials, Insurance News
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