Benfield IAR has released its “Lloyd's update - Improved performance” which examines the recent advances made in terms of both underlying profitability and business process reform.
Lloyd's 2004 pro forma pre-tax profits of £1.36bn marked a third year of positive results despite £1.3bn of natural catastrophe claims. Strengthening of reserves and the settlement of the Central Fund insurance arbitration were also features. The latter has depleted central solvency resources although the subordinated debt issue has enhanced not only the quantum of funds but also financial flexibility. Improving performance extends beyond profitability.
Lloyd's is aiming to build a strong competitive platform and this necessitates upgrading business processes. While each firm regulated by the FSA is itself responsible for ensuring contract certainty Lloyd's has been instrumental in formulating an implementation plan. Elsewhere, advances are being seen at Kinnect, the electronic data platform.
