Page last updated at 07:13 GMT, Thursday, 3 April 2008 08:13 UK

Claims dip boosts insurer Lloyd's

Lloyd's of London building in Leadenhall market (left)
Lloyd's of London insures 90% of FTSE 100 companies

The world's biggest insurance market, Lloyd's of London, has posted a rise in 2007 profits, helped by fewer catastrophe claims.

Lloyd's said pre-tax profits rose to 3.85bn ($7.6bn) for the year, up from 3.66bn in 2006.

Strong investment returns and a release of surplus reserves also contributed to the profit, Lloyd's said.

However, the market warned that the low level of disaster claims had led to pressure to cut premiums.

The absence of any major natural disasters since US hurricanes Katrina and Rita in 2005 is making it difficult for Lloyd's to increase rates at the same level.

It also said that it could not rely on low levels of catastrophes to lift its earnings in 2008.

"Last year's softening market conditions reinforced, once again, the need for a clear strategy to enable the market to maintain discipline and strength in the face of increasing competition," said Lloyd's chief executive Richard Ward.

Lloyd's is made up of 75 underwriting syndicates, which insure a wide range of items and businesses.

video and audio news
How Lloyd's of London has achieved record earnings

Weather boost for insurer Lloyd's
29 Mar 07 |  Business
Storms push Lloyd's into the red
06 Apr 06 |  Business
Lloyd's sues insurance brokerages
03 Feb 06 |  Business
Insurer Lloyd's wins China deal
09 Nov 05 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2020 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific