Underwriting hailed as claims ratio below 92% beats rivals
Lloyd’s of London reported a near 40% leap in half year profits to £1.32bn claiming its claims ratio was lower than all its competitors.
Financial Highlight (2008 in brackets)
- Profit before tax £1.32bn (£949m)
- Combined ratio of 91.6% (89%)
- Investment return £708m (£346m)
- Central assets of £2.0bn (£1.9 billion)
“Our Combined ratio of 91.6% (89%) continues to compare well with our peers who recorded an estimated average of 100% for US property & casualty insurers (99%), 94% for US reinsurers (98%), 84% for Bermuda (86%), and 99% for European insurers and reinsurers (96%),” Lloyd’s said
Lloyd's chairman, Lord Levene, said: “The first six months result has been achieved in what remain challenging circumstances. 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.
“External conditions, however, remain difficult with the US windstorm season and recessionary trends continuing to pose a threat to the insurance industry.”
Lloyd's chief executive Richard Ward said: “Lloyd's prudent and conservative approach has ensured that our capital position and ratings remain strong. While we are well placed to take advantage of opportunities through the market's wide product range and distribution channels, our focus must remain on underwriting profitability.”
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