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Insurance industry teetering on edge of profitability: Lloyd’s CEO


May 19, 2010   by Canadian Underwriter


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One more catastrophic event in 2010 could tip the insurance industry into a loss position, guardian.co.uk quoted Richard Ward, Lloyd’s CEO, as saying.
Ward spoke at the Insurance Day Summit in London on May 18.
He described 2010 as the “worst and most challenging year” that Lloyd’s has faced since he became CEO in 2006, a release from the summit says.
Large losses from the Chilean earthquake and the Transocean oil spill, combined with low rates and investment returns, have created an uncertain outlook moving forward, Ward said.
“Don’t talk to me about growing, talk to me about how you are going to shrink and make underwriting profit,” he said, adding that underwriting profit has been dropping off since 2005.
“So, what do we need to do? We need to stop writing the rubbish business. Cut it out. Focus on the good business where we can generate the profit,” the release quoted him as saying.
“We have got to lose some weight. We need capacity to reduce so rates can go up and we need to get fit.”


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