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.
Lloyd’s has reported a pre-tax profit of £1.8 billion [approximately Cdn$3.65 billion], for the first six months of 2007, marking a 34% increase over last year.
Lloyd’s saw a profit of £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 Lloyd’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.
“This result was driven by the favourable rating environment in 2006, together with the release of prior claims reserves,” a Lloyd’s statement says.
This was balanced by the weaker, but still profitable, underwriting conditions experienced in the first half of the year.
“These profits reflect the recent favourable rating environment and a relatively low level of catastrophe claims,” Richard Ward, Lloyd’s chief executive, said in a statement.
“We 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,” he added.
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Looks good on profit in such a soft market.
Lloyd’s has reported a pre-tax profit of £1.8 billion [approximately Cdn$3.65 billion], for the first six months of 2007, marking a 34% increase over last year.
Lloyd’s saw a profit of £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 Lloyd’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.
“This result was driven by the favourable rating environment in 2006, together with the release of prior claims reserves,” a Lloyd’s statement says.
This was balanced by the weaker, but still profitable, underwriting conditions experienced in the first half of the year.
“These profits reflect the recent favourable rating environment and a relatively low level of catastrophe claims,” Richard Ward, Lloyd’s chief executive, said in a statement.
“We 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,” he added.
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