Lloyd’s has reported its strongest interim result since 2007, despite challenging market conditions.
This is according to Aon Benfield’s latest Lloyd’s update report, covering the market’s 2014 interim financial results and business position going into 2015.
Lloyd’s pre-tax profit rose by 21 percent to £1.7 billion in the first half of 2014, representing an annualized return on capital employed of 16.5 percent.
Its gross written premiums hit £14.9 billion, down 4.1 percent on a reported basis. In the aggregate, risk-adjusted rates fell by 3.3 percent, mainly driven by competitive pressures in property treaty and energy business. Aon said that this offset modest growth in other lines and contributions from new syndicates.
Lloyd’s underwriting profit also fell to £1.1 billion in the first half of 2014, compared with £1.3 billion in the first half of 2013. This resulted in a deterioration in its combined ratio which fell to 88.2 percent, compared with 86.9 percent in the same period of the prior year. Aon said this deterioration was driven by adverse foreign exchange movements and costs associated with Solvency II implementation.
Lloyd's, Aon Benfield, First Half 2014 Results, Europe