In 2008 Lloyd’s realised a profit before tax of £1,899m (2007: £3,846m) and a combined ratio of 91.3% (2007: 84.0%).
Higher levels of catastrophes and attritional claims were partially offset by currency movements and prior year releases.
Return on investments of 2.5% (2007: 5.6%) benefited from a conservative investment strategy.
Surplus on prior years of £1,265m (2007: £856m) based on strong reserves.
Central assets increased further to £2,072m (2007: £1,951m).
Financial security is crucial. It gives confidence to capital providers and peace of mind to policyholders.
Lloyd’s strength and robust capitalisation is reflected in our ratings. In 2008, all three rating agencies affirmed Lloyd’s ratings, reinforcing our resilience and the financial strength of the market.
The Lloyd’s financial strength ratings apply to every policy issued by every syndicate at Lloyd’s since 1993.
“Lloyd’s has a strong competitive position in the global insurance market and benefits from its reputation for innovative and flexible underwriting. Its competitive strength derives from its marketplace structure that fosters the development of strong specialist underwriting skills.”
A.M. Best, July 2008.
