Lloyd’s announced a pre-tax profit of US$4.9 billion (£3.2 billion) for 2014, which is unchanged from the profit figure reported in 2013.
The 2014 profit was driven by a relatively benign year for major natural catastrophes, favorable prior year development, and an improved investment return, Lloyd’s said in a statement. “Investment returns reflect the conservative asset mix and low interest rate environment.”
Other highlights for the year include:
- Combined ratio of 88.1 percent; 86.8 percent in 2013
- Return on capital of 14.7 percent; 16.2 percent in 2013
- Capital and reserves rose 11.2 percent to $41.7 billion (£23.5 billion); £21.1bn in 2013
- Investment return of 2 percent; 1.6 percent in 2013
- Gross written premiums of $41.7 billion (£25.3 billion); £25.6bn in 2013.
“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,” according to Lloyd’s CEO, Inga Beale.
“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,” Beale added.
“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 chairman, John Nelson. “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.”
Nelson said the market is making good progress in its global access with the opening in March of the Dubai platform as well as a 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.”
Exchange rate as of December 31, 2014: £1 = US$1.56