Lloyd's Reports $4.9 Billion Profit for 2014

Lloyd’s, the world’s specialist insurance and reinsurance market, today announced a pre-tax profit of $4.9 billion (£3.2 billion), with a return on capital of 14.7%.

  • Pre-tax profit of $4.9 billion (£3.2 billion) (2013: £3.2 bn)
  • Combined ratio of 88.1% (2013: 86.8%)
  • Return on capital of 14.7% (2013: 16.2%)
  • Robust capital and reserves increase by 11.2% to $41.7bn (£23.5bn) (2013: £21.1bn)
  • Investment return of 2% (2013: 1.6%)
  • Lloyd’s outperforms competitor group
  • Strong and stable ratings with Fitch upgrade to AA- in June 2014.

Lloyd's continues to outperform their competitor group with a combined ratio for Lloyd’s of 88.1%, compared with their average of 93.1%.

The 2014 profit was driven by a relatively benign year for major natural catastrophes, favourable prior year development, and an improved investment return. Investment returns reflect the conservative asset mix and low interest rate environment.

Lloyd’s CEO, Inga Beale, said: “This is a strong set of results for Lloyd’s, despite challenging market conditions. The robust performance of the market in 2014 reflects a collective achievement, of which we should be proud.

“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.”

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.

“We are making substantial progress against our long term growth strategy, Vision 2025, with plans to modernise 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.”

Posted on March 26, 2015 .