Chairman Levene warns that underwriting discipline must continue

Lloyd’s has announced a £3.8bn profit for 2007, with a combined ratio of 84%.

The market also announced a 34% increase in central assets to £1,951m and a 21% increase in investment return, to £2,007m. £856m of surplus reserves were released.

Lloyd’s chairman Lord Levene said: “2007 was another profitable year for Lloyd’s, with the market reporting a £3.8bn profit and continuing to outperform its major international peers. Lloyd’s benefited from a limited exposure to catastrophes but this has resulted in increased pressure on rates across all lines of business. The need to exercise underwriting discipline and maintain a focus on underwriting for profit rather than market share remains essential.”

Lloyd’s chief executive Richard Ward said: “Last year’s softening market conditions reinforced, once again, the need for a clear strategy to enable the market to maintain discipline and strength in the face of increasing competition. As a marketplace we have a responsibility to our policyholders and to ourselves to ensure that we maintain our financial strength and security throughout the course of a cycle.”