After the “costliest” half year since it began interim reporting, Lloyd’s has reported that its profit before tax has more than halved to £628m (June 2009 £1.32bn) while the combined ratio has risen to 98.7% (June 2009 (91.6%).
In a statement Lloyd’s said the result reflected a period of significant claims and extremely challenging investment conditions. It added that the positive investment return of £597m was due to a conservative investment mix during a period of continuing volatility in financial markets, and central assets are at a record high.
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 £628 million.”
Lloyd’s chief executive, Richard Ward, added: “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.”