Lloyd’s reports highest profit in its history in 2009

Lloyd’s of London reported a pre-tax profit of GBP3.9 billion (Cdn$5.9 billion) in 2009, the highest in its history and a marked increase from 2008’s pre-tax profit of GBP1.9 billion (Cdn$3.2 billion).
The market reported a combined ratio of 86.1% for the year, an improvement from 2008’s combined ratio of 91.3%.
Gross written premium for the year increased by 22% (to GBP21 billion) in 2009, up from GBP18 billion in 2008.
“Most of this increase is attributable to the different average exchange rates applied to translate US dollar business into sterling in 2009 compared to 2008,” Lloyd’s annual report says.
“Over 65% of the market’s business is denominated in US dollars so this movement in exchange rates has had a major impact on gross written premium (and other lines in the profit and loss account) when translated into sterling.”
Investment returns also improved significantly year-over-year, increasing from GBP977 million (Cdn$1.5 billion) in 2008 to GBP1.8 billion (Cdn$2.7 billion) last year.
“The [2009] result has been achieved despite the economic turbulence that characterised most of 2009, although we were certainly helped by a low level of catastrophe related losses — helped by a benign Atlantic hurricane season,” said Lloyd’s chairman Lord Peter Levene.