Lloyd’s, the specialist insurance market, announced a profit of 1,899 million for 2008.
Financial highlights:* profit before tax of 1,899 million (2007: 3,846 million);* combined ratio of 91.3% (2007: 84.0%) compares favourably with an estimated average of 101% for US property and casualty insurers (i)102% for US reinsurers (ii) 97% for European insurers and reinsurers and, 92% for Bermudian insurers and reinsurers (iii);* central assets increased to 2,072 million (2007: 1,951 million);* investment return of 957 million (2007: 2,007 million);* profit before tax excluding currency movements on non-monetary items of 1,529 million (2007: 3,846 million); and* surplus on prior years’ reserves of 1,265 million (2007: 856 million).
“Amidst the unprecedented slump in the world economy, Lloyd’s remains in good shape,” says Lord Levene, chairman of Lloyd’s. “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.”
“In these testing times, it will be those businesses with clarity of vision and purpose that will stand the best chance of success,” says Richard Ward, Lloyd’s chief executive. “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.”
The report can be downloaded here.
D.C.