Lloyd's results in line with expectations, says Moody's

Moody's has welcomed Lloyd's return to profitability after the losses of recent years.

The ratings agency said that Lloyd's forecast profit for the 2002 account, and, the 2000 account loss of £2.3bn were in line with expectations.

However Moody's noted that the 2000 year of account had "deteriorated materially" from the 17% loss forecast by Lloyd's to the actual loss of 23.7% of capacity.

Moody's also expressed concern over the "significant difference" of £520m between Lloyd's forecast of a loss of £1.6bn on the 2001 account and Moody's forecast loss of £2.2bn.

However it conceded that the losses were exacerbated by claims arising from recent terrorist attacks in the US.

Moody's European Insurance Division managing director Mark Hewlett said: "Moody's welcomes Lloyd's return to profitability for 2002 in what is hoped will be a period of strong profitability in the current upturn, offsetting losses incurred in the recent downturn."