Lloyd’s boosts H1 profit despite challenging conditions
Lloyd’s of London posted a solid set of results for the first half, which included a leap in profits and an impressive combined ratio, despite what the market’s CEO described as challenging underwriting and investment conditions.
The market made a pre-tax profit of £1.19 billion in the first half of 2015 compared with £1.65 billion a year earlier. Its return on capital for the period was 10.7 percent, a drop on the 16.3 percent in made in H1 2014 and its combined ratio was 89.5 percent, also worse than the 87.4 percent in posted the year before but a figure that it stressed outperformed its competitors.
“The combined ratio shows Lloyd’s outperforming its competitors for the fourth consecutive year and reflects the results of the market’s 96 syndicates,” Lloyd’s said in its result statement.
It added: “Lloyd’s profit and rating has been achieved within the context of difficult trading conditions, which have seen low interest rates reduce investment returns and increase competition on insurance premiums around the world.”
Inga Beale, the market’s chief executive, said: “These results demonstrate Lloyd’s success and resilience despite challenging underwriting and investment conditions. This sizable profit is in large part due to the market’s expert underwriting and our deep commitment to rigorous oversight. Our modernisation strategy and our innovative approach ensures that Lloyd’s continues to play a vibrant role as the world’s leading specialist insurance and reinsurance market.”
Lloyd’s chairman, John Nelson, said: “Over the past six months Lloyd's has continued to outperform its competitor group. Although there is little doubt that challenging times lie ahead, Lloyd’s is in a robust financial position, well capitalised and well reserved to face the future. With an expanding international footprint across Asia, Latin America and the Middle East, Lloyd’s influence and relevance as a global force for effective risk management has never been stronger.”
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