Lloyd’s records £1.67bn profit

The Lloyd’s market has recorded a £1.67 billion profit for the first six months of 2014, despite increasingly tough market conditions.

The results, which are an aggregate of all the carriers underwriting on the Lloyd’s market, are an improvement over the equivalent period in 2013.

For the first six months of 2014, Lloyd’s posted a combined ratio of 88.2 percent, compared with 86.9 percent in the same period of 2013, and a return on capital of 16.5 percent.

Investment income improved to £642 million, compared with £247 million in the first half of 2013, returning to the levels seen in 2011 and 2012, although they continue to remain affected by the low interest rate environment. Lloyd’s added that a weakening of the US dollar against sterling has had a slight negative impact on these results of 1 percent on net earned premium.

Lloyd’s chief executive officer, Inga Beale, said: “This is an excellent set of half year results for the Lloyd’s market. This is in large part down to the market’s expert underwriting. Continued innovation, combined with robust oversight and financial strength, all ensure the successful operation of the market despite challenging conditions.”

Lloyd’s chairman, John Nelson, said: “I am delighted by these half year results, especially as they come against a backdrop of an intensely competitive environment. The Lloyd’s market remains in a strong financial position, and this solid foundation means Lloyd’s is in a great position to expand in both established and high-growth economies around the world."