Lloyd's has announced an annually accounted profit of £1,357m in 2004. This was achieved despite net claims of £1.2bn from the US hurricanes, in the worst-ever year for industry losses from natural catastrophes.
Highlights of the results include:
• profit of £1,357 million, before tax, for 2004 on a pro-forma annually accounted basis(2003: £1,892 million);
• combined ratio of 96.9% (2003: 90.7%) compares favourably with an estimated average of 98.7% for US property and casualty insurers (i), 106.1% for US re-insurers (ii) and 98.2% for European insurers and re-insurers (iii);
• resources of the Society and Members up 20% to £12,169 million (2003: £10,145 million); and
• 52% increase in central assets to £1,184 million, following successful £500 million subordinated debt issue.
Chairman of Lloyd's, Lord Levene, said:
“These results, achieved despite significant losses from natural catastrophes, are testimony to the continually improving quality and strength of the Lloyd's market. A few years ago, such a performance would have been unthinkable.
“Lloyd's is rightly proud of the important part it plays in insuring some of the world's toughest risks. The critical nature of this role was yet again underlined in 2004 with the catalogue of natural disasters across the globe.”
Lloyd's Chief Executive, Nick Prettejohn, said:
“Lloyd's performance compared well with our global competitors. However, we must remain vigilant if we are to continue to deliver a strong underwriting performance. Market conditions remain profitable but increasingly competitive in a number of lines.
“There will be no let up in our determination to improve the efficiency of doing business at Lloyd's and in our focus on the quality of that business rather than volume.”
