As we know, Lloyd's of London is the oldest insurance market. The following is its first half year of 2007 profit report.
Looks good on profit in such a soft market.
Lloydâ€™s has reported a pre-tax profit of Â£1.8 billion [approximately
Cdn$3.65 billion], for the first six months of 2007, marking a 34%
increase over last year.
Lloydâ€™s saw a profit of Â£1.35 billion [approximately Cdn$2.74 billion] for the same period of 2006.
The insurer also reported a combined ratio of 82.9% for the first half of 2007, compared to 86.0% for the same period in 2006).
A Lloydâ€™s release contrasts this ratio with an estimated average of 93%
for U.S. property and casualty insurers, 90% for U.S. reinsurers, 86%
for Bermuda, and 97% for European insurers and reinsurers.
â€œThis result was driven by the favourable rating environment in 2006,
together with the release of prior claims reserves,â€ a Lloydâ€™s
This was balanced by the weaker, but still profitable, underwriting conditions experienced in the first half of the year.
â€œThese profits reflect the recent favourable rating environment and a
relatively low level of catastrophe claims,â€ Richard Ward, Lloydâ€™s
chief executive, said in a statement.
â€œWe are now seeing a downward pressure on rates and a softening of
conditions across all classes. This reinforces the continued need to
focus on underwriting for profit,â€ he added.