“Costliest on record” since half-year reporting began

Lloyd’s H1 profits more than halved to £628m from £1.32bn last year on the back of the costliest ever claims and a poor investment environment.

  • Its combined ratio rose to 98.7% from 91.6%.
  • Investment return fell to £597m from 2009’s £708m.
  • Central assets rose to £2.23bn from £2.01bn.

Claims to blame

Lloyd’s chairman, Lord Levene, said: “The first six months of 2010 were the costliest on record since we began interim reporting, testing not only Lloyd’s but insurers around the globe.

“While events such as the Chilean earthquake and the Deepwater Horizon loss have proved challenging, paying these claims and supporting our policy holders is what we are here to do.

“It is a true indication of the strength of the Lloyd’s market that despite challenging investment conditions, softening rates and exceptional catastrophic events, we have returned a first half profit of £628m.”

Challenging market

Lloyd’s chief executive, Richard Ward, said: “The first half of 2010 demonstrates that we are well placed to deal with challenging market conditions.

“Our resolute focus on underwriting discipline, close attention to our customers’ needs and a prudent approach to investment stands us in good stead for the second half of the year.”

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