LLoyds of London upbeat despite seeing its profits cut in half by disasters

LLOYD’S OF London has cheered first half results despite seeing profits halve, saying it was starting to emerge from “one of the costliest years for natural catastrophes in the past decade”.

Its latest earnings report showed pre-tax profits came in at just £600m, down from £1.2bn during the same period last year.

Lloyd’s said that figure was affected by lower returns on investment, totalling just £200m compared to £1bn a year earlier, “which is consistent with the low returns seen across most asset classes over the period”.

But executives cheered Lloyd’s performance, given the market suffered its first annual loss in six years in 2017 on the back of a raft of natural disasters.

Lloyd’s tumbled £2bn into the red last year when insurers were hit by mammoth bills following hurricanes in the Caribbean and Florida, earthquakes in Mexico and wildfires in California.

Chief executive Inga Beale said: “These results and return to profit demonstrate the strength of the Lloyd’s market following one of the costliest years for natural catastrophes in the past decade.

“Whilst these results are welcome, Lloyd’s continues to concentrate on improving the Lloyd’s market’s long-term performance by taking action to address under-performing areas of the market.

“The corporation also remains focused on making the Lloyd’s platform more competitive.”

Lloyd’s earnings report showed a “modest increase” in gross written premiums.