Lloyd’s announces £3.8 billion (€5.2bn) profit for 2007
* Profitable underwriting conditions
* Strengthened capital resources
* Continuing focus on underwriting discipline
Lloyd’s, the world’s leading specialist insurance market, today announced a profit of £3,846 million (€5,231 million) for 2007.
* profit before tax of £3,846 million (€5,231 million) (2006: £3,662m);
* combined ratio of 84.0% (2006: 83.1%) compares favourably with an estimated average of 93.8% for US property and casualty insurers (i) 94.7% for US reinsurers (ii) 96.0% for European insurers and reinsurers and, 85.1% for Bermudian insurers and reinsurers (iii);
* 34% increase in central assets to £1,951 million (€2,653 million) (2006: £1,454m);
* investment return up 21% to £2,007m (€2,730 million) (2006: £1,661m); and
* release of surplus reserves of £856m (€1,164 million) (2006: £270m).
Commenting on the results, Chairman of Lloyd’s, Lord Levene, said:
“2007 was another profitable year for Lloyd’s with the market reporting a £3.8 billion (€5,231 million) 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.”
Lloyd’s Chief Executive, Richard Ward, said:
“Lloyd’s is in good shape to meet the challenges that face us but we cannot expect the strong underwriting conditions and low levels of catastrophes to continue. 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.”
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