Lloyd’s, the specialist insurance and reinsurance market operating in over 200 countries, announced ‘excellent’ results from the first half of 2014, according to its 2014 Interim Report.
The A+ rated firm revealed that it posted a profit of $2.86 billion in the six months ending June 30, a 21% increase from the same timeframe the year prior.
“This is an excellent set of half year results for the Lloyd’s market. This is in large part down to the market’s expert underwriting. Continued innovation, combined with robust oversight and financial strength, all ensure the successful operation of the market despite challenging conditions,” CEO Inga Beale said in a statement.
Lloyd’s Chairman John Nelson notes that these figures are particularly notable since market conditions have been ‘challenging,’ particularly in the aviation sector where claims surpassed $600 million.
In addition, a prolonged period of low interest rates has caused an abundance of capital which has led to increased competition.
Despite these factors, the market boasts:
- 16.5% return on capital
- $1,072 million in investment income
- A combined ratio of 88.2%, which beat competitors
- Upgrade in Fitch rating from AA- to A+
“I am delighted by these half year results, especially as they come against a backdrop of an intensely competitive environment,” said Nelson. “The Lloyd’s market remains in a strong financial position, and this solid foundation means Lloyd’s is in a great position to expand in both established and high-growth economies around the world.”
