Lloyd’s of London reports profit fall

Lloyd's of London reports profit fall

Pre-tax profits at the world’s biggest insurance market, Lloyd’s of London, fell 47% to £949 million for the first six months of the year, compared to £1.8 billion the previous year.

Commenting on the results, Lloyd’s chairman Lord Levene, said the fall was no surprise with profits heavily influenced by falling investment income and increased cost of claims.

Lord Levene warned that the latter half of the year will remain subject to the incidences of natural disasters.

The group said the costs of Hurricanes Gustav and Ike in the US was likely to have an impact on earnings as they caused considerable, widespread damage.

Last year’s figures were boosted by the absence, at the time, of any major natural catastrophes since US hurricanes Katrina and Rita in 2005.

Despite the decline in profits, the market’s combined ratio remained below 89% for the period.

Chief executive, Richard Ward, said the market remains in a good position to face the challenges ahead.

Lloyd’s, which is world’s leading specialist insurance market, is made up of 75 underwriting syndicates, which insure a wide range of items and businesses.

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