The World’s largest insurance market is challenged by continued pressure on pricing and low investment returns
Lloyd’s of London insurance market has posted a 30% drop in profit in its financial year 2015.
The specialist insurer’s market announced last week a profit of £2.1 billion ($2.98 billion) for 2015, representing a serious drop from the £3.0 billion generated in 2014.
John Nelson, Chairman of Lloyd’s, said “In a market undeniably tougher than seen for many years, in 2015 we have had to demonstrate our determination, innovative thinking and ability to adapt and take action.
The significant pressure on premium rates and exceptionally low investment returns have, naturally, had an impact on our results. Low interest rates and low investment returns generally in the capital markets continue to attract additional capital into the sector.“
More than 80 syndicates underwrite insurance at Lloyd’s, covering all classes of business. Together they interact with thousands of brokers and agents daily to create insurance solutions for businesses in 220 countries and territories around the world. Lloyd’s insures the majority of FTSE and Dow Jones industrial average companies.
The annual report announcement contained some positive elements such as the six per cent improvement in gross written premiums to £26.7 billion ($38.4 billion) from the £25.3 billion in 2014. In addition to the seven per cent increase in the capital assets to £25.1 billion ($36.1 billion)
Despite the drop in profits, Lloyd’s remains committed to driving forward with its Vision 2025 plan, which includes the expansion into new markets such as Dubai, China, Turkey, India and South America and many others.