Lloyd’s reports 2008 interim results

Lloyd’s reports 2008 interim results

Highlights

Profit before tax of £949 million (June 2007 £1,807 million).
Combined ratio of 89% continues to compare well with our peers who recorded an estimated average of 99% for US property & casualty insurers (i); 98% for US reinsurers (ii); 86% for Bermuda (iii); and 96% for European insurers and reinsurers.
Investments returned £346 million.
Strongest ever central assets of £1,936 million.

Lloyd’s, the world’s leading specialist insurance market, today announced an interim profit before tax of £949 million for the six month period ending 30 June 2008. The result reflects a softening in market conditions and a rise in attritional claims.

A conservative investment mix has resulted in a positive return of approximately 1%, which outperformed many peers, but showed the impact of the extreme volatility in the capital markets, with both equity and bond holding adversely affected.

Lloyd’s Chairman Lord Levene said:

“We have reported a strong performance in extremely challenging circumstances. The result reported for the first half comes as no surprise with profits heavily influenced by falling investment income and increased cost of claims, while the second half will remain subject to the incidences of natural catastrophes.”

Lloyd’s Chief Executive Richard Ward added:

“The market remains in a good position to face the challenges ahead even though the external conditions in which we operate are about to test our structure and resolve.”

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