What a difference a year makes. Lloyd’s has just announced pretax profits for 2006 of £3.662 billion ($7.2 billion) compared to the £103 million ($202 million) loss figure posted in 2005.
Lloyd’s also posted a favorable combined ratio of 83.1 percent, compared to 2005’s 111.8 percent. The figure is especially good when compared with “an estimated average of 93 percent for US property and casualty insurers, 95 percent for US re-insurers, 94 percent for European insurers and re-insurers and, 86 percent for Bermudian insurers and reinsurers,” according to Lloyd’s announcment.
Assets in Lloyd’s Cenbtral Fund increased by 14 percent to £1.454 billion ($2.856 billion) from £1.266 billion ($2.487 billion) in 2005.
Lloyd’s Chairman Lord Levene and CEO Richard Ward made all the right noises in their comments on the excellent results. Levene noted that “we benefited from strong underlying conditions and an exceptionally low level of catastrophes.” Ward stressed Lloyd’s “strong competitive position” and its results which he said “compares well with our global peers.”
Both leaders then warned against complacency. Levene indicated: “it would be unrealistic to expect such a favourable claims experience this year. With a trend for more frequent and severe natural catastrophes.” While Ward stressed that “retaining our competitive edge requires an unrelenting focus on all our customers.”
The full report, additional information and comments may be accessed on the Lloyd’s web site at: www.lloyd’s.com.
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