Profits boost at Lloyd's of London
First-half pre-tax profits at insurer Lloyd's of London have jumped to £1.32 billion thanks to a relatively low level of catastrophe claims.
This is up from £949 million in the first six months of last year, and has been attributed to brokers and policyholders seeking the security of the Lloyd's specialist market.
Nevertheless, with the US tornado season brewing and the continuing threat posed by the global recession, Lloyd's warns that external conditions remain difficult.
But while natural catastrophes such as hurricanes Gustav and Ike generated significant claims, the 74-syndicate-strong market says it is confident it can cope with future catastrophes.
With a new franchise structure and the phasing out unlimited liability, its combined ratio - the industry measure of profitability - stands at 91.6%. A figure below 100% represents a profit.
Says chairman Lord Levene: "The first six months result has been achieved in what remain challenging circumstances. The market is in solid financial shape, and business volumes have increased as a result of brokers and policyholders seeking to use the security of the Lloyd's platform."