Combined ratio for Lloyd’s at 90% for 2015, up from 88.4% in 2014

Lloyd’s of London, the world’s specialist market for insurance and reinsurance, announced on Wednesday a combined ratio of 90% for 2015, up from 88.4% in 2014.

Lloyd’s also reported a pre-tax profit of 2.1 billion pounds for 2015, down from 3 billion pounds in 2014. Gross written premiums increased 6% to 26.7 billion pounds last year, compared to 25.3 billion pounds in 2014. The underwriting result was 2 billion pounds last year, compared to 2.3 billion pounds in 2014, according to Lloyd’s 2015 Annual Report.

“The results demonstrate Lloyd’s continuing financial strength and sound market-wide performance despite a turbulent macro-economic backdrop,” Lloyd’s said in a statement, adding that “profits remain significant despite fall in investment returns and pressure on prices.”

“Each year brings a unique set of challenges, requiring determination, innovative thinking and solutions,” added Lloyd’s chairman John Nelson. “This year has been no different. In a market undeniably tougher than seen for many years, we have had to demonstrate our ability to adapt and take action. In these conditions, these results are creditable and a tribute to the continued skill and professionalism of the Lloyd’s market underwriting community.”

For the Lloyd’s market, major claims were 724 million pounds in 2015, compared to 670 million pounds in 2014, net of reinsurance and including reinstatements payable and receivable. There were few notable insured natural catastrophe events, with the largest losses arising from winter weather in the United States, the annual report said. “While the [United Kingdom] experienced its own severe weather and flooding in December 2015, the level of insurance claims from the storms is not expected to be significant to the Lloyd’s market,” the annual report said.

In terms of man-made losses, the offshore energy sector was affected by a series of large events, with claims from the Port of Tianjin explosion in China being largely marine-related. There were also several large losses in the aviation and space sectors, including the Germanwings airline disaster.