Lloyd’s announces $3.4 billion profit in 2010 despite catastrophe claims
Lloyd’s announced it earned a profit of £2,195 million (US$3,446m) for 2010.
The specialty insurance market’s combined ratio of 93.3% (2009: 86.1%) compares favourably with an estimated average of: 101.5% for US property and casualty insurers ; 95.4% for US reinsurers ; 90.8% for Bermudian insurers and reinsurers ; and 101.0% for European insurers and reinsurers.
Commenting on the results, Chairman of Lloyd’s Lord Levene said: “In 2010, Lloyd’s made a profit of US$3.4bn despite facing significant claims from the tragic earthquakes in Chile and New Zealand, the floods in Australia and the loss of the Deepwater Horizon oil rig in the Gulf of Mexico. The catastrophes of 2010 and 2011 have shown the crucial role insurance plays in helping communities rebuild after a crisis.
“We must also keep in mind that insurance is part of a wider financial services industry that is essential to Britain’s economic recovery. We look to the government to protect the competitiveness of our industry and its contribution to both society and the economy.”
Lloyd’s Chief Executive Richard Ward said: “This is a solid result in a year with a slightly higher than average number of natural catastrophes. And 2011 has already been an extraordinary year of tragic natural disasters. We extend our deepest sympathies to those affected and we are working hard to make sure claims are dealt with swiftly so communities in Japan, New Zealand and Australia can rebuild and recover.
“These are challenging times for insurers. Rates have been softening, there is excess capital across the industry and investment returns are down. In 2011, we must help the market steer through the cycle, ensuring they underwrite for profit and not growth. At the same time we are positioning the market to take advantage of future opportunities by expanding in new economies and making it even easier to do business with Lloyd’s.
To see the full financial report, click here. (PDF)
