Credit Crunch

24/03/2009   Lloyd’s makes $2.73B pretax profit for 2008 (dated 24th march 2009)

LONDON—Lloyd’s of London said it made a pretax profit of £1.90 billion ($2.73 billion) for 2008, about half of the £3.85 billion ($7.66 billion) it made in 2007.

Lloyd’s said its investment return fell to £957 million ($1.36 billion) for 2008 compared with £2.01 billion ($4 billion) the previous year.

The London-based insurance market said its combined ratio for 2008 rose to 91.3% in 2008 compared with 84% for the previous year.

The central assets of the market—including the Central Fund, which is intended to bail out syndicates that cannot meet their liabilities, as well as other assets of the Corp. of Lloyd’s—increased to £2.07 billion ($2.98 billion) in 2008 compared with £1.95 billion ($3.88 billion) in 2007.

Lloyd’s said its surplus from prior years’ reserves was £1.27 billion $1.83 billion) in 2008 compared with £856 million ($1.70 billion) in 2007.

"The market has inevitably been impacted by significant claims from natural catastrophes, lower insurance rates and a reduction in investment income, but this has been partially offset by currency movements and prior-year surpluses," he added.

"As we move into 2009, it is more important than ever that we continue to improve our service to our customers, enhance our partnership with the market and continue to monitor the shifting global landscape so we are prepared to create and take advantage of opportunities as they arise," Richard Ward, Lloyd’s chief executive officer, said in the statement.