Lloyd’s reports increase in profits to Cdn$7.6 billion

Lloyd’s has reported a profit of 3.8 billion (approx. Cdn$7.6 billion) in 2007, an increase over 2006’s profit of 3.6 billion (approx. $7.2 billion).
The market reported a combined ratio of 84.0%, a slight increase over 2006’s 83.1%.
This compares favourably, a Lloyd’s release notes, with the average of 93.8% for U.S. property and casualty insurers and 94.7% for U.S. reinsurers.
Gross written premium for the year was 16.4 billion (approximately $32.8 billion), marking a decrease of 0.3% from 2006.
“While 2006 was a tale of two markets, the hardening in wind-exposed catastrophe business in the U.S. has largely ceased,” its annual 2007 report said. “In 2007, Lloyd’s saw evidence of concessions on rates across all major classes of business.”
Broken down by sectors, Lloyd’s reinsurance operations reported underwriting results of 790 million (approx. Cdn$1.6 billion), compared to 802 million in 2006. Its property segment reported 408 million (approx. Cdn$817.3 million), compared to 495 million in 2006. And its casualty sector reported 205 million (approx. Cdn$410.5 million), compared to 327 million in 2006.
“2007 has been a year where Lloyd’s continued to ‘outperform’ its major international peer groups,” said Lloyd’s chairman Lord Peter Levene. “Lloyd’s benefited from a limited exposure to catastrophes, but this has resulted in increased pressure on rates across all lines of business. The need to exercise underwriting discipline and maintain a focus on underwriting for profit rather than market share remains essential.”