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Lloyd's Hails Record Profit of $5.8 Billion for '09

Posted on 24 Mar 2010

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Lloyd's this morning announced $5.8 billion for 2009, which it hailed as a "record results during challenging economic conditions".The market recorded a combined ratio of 86.1% (2008: 91.3%) which it added compared favorably with an estimated average of 100% for US property and casualty insurers, 94% for US reinsurers, 99% for European insurers and reinsurers and, 84% for Bermudian insurers and reinsurers.

As per usual in a year with few natural catastrophes, Lloyd's reinsurance syndicates performed favorably, with a 78% combined ratio (in comparison to the 86.1% overall).

Commenting on the results, chairman of Lloyd's, Lord Levene, said: "The hard work and very careful attention to risk in the Lloyd's market have resulted in a pre-tax profit of £3.9bn, the highest that we have ever recorded.

"The 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. The market can be proud of what it has achieved in 2009.

"These results show that not all parts of the financial services sector are the same and, at Lloyd's, our strength and resilience means that we can face the future with confidence."

Lloyd's chief executive Richard Ward, added: "Our 2009 results are built on a resolute focus on underwriting discipline coupled with a strong balance sheet and a conservative investment strategy. This has meant that, during testing times for the financial services industry, we continued to be a stable partner for businesses seeking to manage their risks.

"While the results are a testament to our strength, we cannot afford to be complacent and in 2010 we must work to continue to develop the attractiveness of the market, whilst focusing on profitable underwriting and sound risk management."