Lloyd's explores opportunities in German SME sector

With a GDP of more than €2.2 trillion - growing at its fastest rate since reunification in 1990 - Germany is one of the world's leading industrialised countries. It already represents Lloyd’s ninth largest market worldwide and its third-largest in Continental Europe, with €370m of premium written in 2009.

However, with the German economy characterised by SMEs - approximately 99% of all companies are in this sector – and Lloyd’s Chairman Lord Levene believes there is scope for Lloyd’s to grow its business by working with these companies as well as the larger international organisations the market is generally associated with.

 “I am a great admirer of the German economy, and particularly the resilience which it has shown in bouncing back from the financial crisis – growing by 3.6% in 2010,” he said during a visit to Frankfurt and Stuttgart this week.

“In some ways, Germany is the China of Europe– it is the world’s second largest exporter, after China. And that is in many ways due to small and medium-sized manufacturing companies making tools and selling them to Chinese constructors and industrialists, who, as we all know, are also buyers of luxury German cars in ever increasing numbers.”

He added: “At the moment, German exports are booming and I want Lloyd’s to see how we can work with German companies. Not just our traditional clients, the large conglomerates, but also the smaller players.”

Lloyd’s currently has seven service companies in Germany and 16 coverholders. During his visit, Lord Levene met many of these to discuss their operations and delivered a series of speeches, including to business leaders and one at the Goethe University in Frankfurt.

To view Lord Levene’s speeches in full, click here.