Lloyds posts profit rise

Source: Exec Digital UK

Date :27/09/2007 12:00:53

Lloyd's of London has reported a 34 percent rise in first-half pre-tax profits.

Interim results released today show that the world's oldest and biggest insurance market made a pre-tax profit of £1.81 billion in the six months to June 30 compared to £1.35 billion last year.

Lloyd's chief executive Richard Ward said its performance over the period was partially the result of “low level of catastrophe claims”, with no hurricanes having made US landfall so far this year.

However, Lloyd's also warned full-year results would be strongly influenced by claims activity at the end of the year.

Lloyd's, which is made up of more than 60 underwriting syndicates, was badly hit by the multiple hurricanes of 2005.

Katrina cost the insurer £1.9 billion alone while Wilma and Rita cost it an additional £1 billion.

Lloyd's said its combined ratio a key measure of an insurer's underwriting profitability - continued to "outperform major international peer groups", falling to 82.9 percent.

The latest figure indicated more profitable underwriting compared with last year's combined ratio of 86 percent.

September 27 2007

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