On Thursday, Lloyd’s announced a pretax profit of $4.9 billion, or £3.2 billion, with a return on capital of 14.7 percent and a combined ratio of 88.1.
The profit figure was level with the 2013 figure, which was also £3.2 billion.
The 88.1 underwriting profit result, while up more than 1 point from the 86.8 result recorded in 2013 is better than the average of 93.1 for a competitor group, Lloyd’s said in a statement.
Competitors included in the comparative figure provided by Lloyd’s are ACE AIG, Arch, Everest Re, Hannover Re, Mapfre, Munich Re, Partner Re, SCOR, Swiss Re, and XL.
Lloyd’s CEO Inga Beale said: “In the face of global challenges, an abundance of capital and the low interest rate environment, Lloyd’s is being proactive in seizing the opportunities out there for growth and diversification. We will continue to engage with our global network of syndicates and brokers, to ensure Lloyd’s remains at the forefront of innovation in the industry.”
In terms of gross premiums, the Lloyd’s report indicated that the top line, like the bottom line, held steady. The 2014 gross written premium figure came in at $41.7 billion, or £25.3 billion, for 2014, compared to £25.6 billion in 2013.
Lloyd’s Chairman John Nelson said, “This is another excellent set of results for the Lloyd’s market, achieved against a backdrop of low interest rates and softening premium rates.”
Lloyd’s recorded an investment return of 2 percent, the market statement said.
Nelson added: “We are making substantial progress against our long-term growth strategy, Vision 2025, with plans to modernize the market and international growth gaining real momentum.
“As regards global access, we have made really excellent progress. Just this month Lloyd’s Dubai platform opened along with our new branch of Lloyd’s China in Beijing.
“We are opening our office in Mexico this year and the Indian government has now passed legislation to allow Lloyd’s to operate onshore in India.
“We are continuing to work hard to open up markets such as Turkey, Malaysia and Colombia,” he said.
Source: Lloyd’s