Lloyd's has reported a record profit of £3.7bn for 2006 following a benign year for catastrophe claims.
Lord Levene, Lloyd's Chairman, said 2006 had been "an excellent year" for the world's leading specialist insurance market, but warned that it would be unrealistic to expect such a good claims experience this year.
Lloyd’s financial results, published today, also reveal that the market has beaten its competitors in terms of profitability. Its 2006 combined ratio of 83.1% compares favourably with the estimated average of 93% for US property and casualty insurers, 95% for US reinsurers, 94% for European insurers and reinsurers, and 86% for Bermudian insurers and reinsurers.
Lloyd’s central assets have also increased by 14.8% to £1.45bn.
Lord Levene said: “During the year, we benefited from strong underlying conditions and an exceptionally low level of catastrophes. However, it would be unrealistic to expect such a favourable claims experience this year. With a trend for more frequent and severe natural catastrophes we must continue our focus on underwriting for profit. The market is well prepared to meet these challenges.”
Richard Ward, commenting on his first annual Lloyd’s results since becoming chief executive last April, added: "Lloyd's is in a strong competitive position and our performance compares well with our global peers. Retaining our competitive edge requires an unrelenting focus on all our customers. We have a clear vision to be the platform of choice for specialist insurance and a clear strategy in place to achieve this.”
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