Canadian Underwriter
News

Decline in profit, but strong underwriting performance for Lloyd’s market in first half


October 16, 2013   by Canadian Underwriter


Print this page Share

The Lloyd’s market reported a 10% decline in pre-tax profit to £1.38 billion for the first half of the year, though gross premiums written rose by 5%, according to the latest market update report from Aon Benfield.

Decline in profit, but strong underwriting performance for Lloyd's market in first half

The decline in profit was “driven by a reduction in the total investment yield from 1.2% to only 0.5%,” according to the report. However, a strong underwriting result led to an annualized return on capital of 14%, according to Aon.

Gross premiums written rose to £15.5 billion, while prior year reserve releases increased to £779 million, or 8.1% of net premiums earned, the report says. On Oct. 16, £1 was equal to $1.66.

Major losses were almost half of the long-term average, at £230 million, which contributed to a combined ratio of 86.9%, one of Lloyd’s best-ever first half underwriting performances, according to Aon.

“Lloyd’s results in the first half of 2013 extended an impressive track record and investor interest remains at high levels,” Mike Van Slooten, international head of market analysis at Aon Benfield Analytics noted in a statement.

“These traits are likely to be rewarded with rating upgrades over the next 12 months, which in turn will potentially widen the market’s access to business.”


Print this page Share

Have your say:

Your email address will not be published. Required fields are marked *

*