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Wednesday, September 21, 2011

Lloyd's of London are well positioned

Lloyd's of London are okay.

According to a Lloyd's media release:
Lloyd's Chief Executive Richard Ward has confirmed that Lloyd's is well positioned to handle the difficulties facing the insurance industry in what is likely to be the second most expensive year ever for insurers.
His statement follows today's announcement that Lloyd's made an interim loss before tax of £697m for the six-month period ending 30 June 2011.
The figure reflects an unprecedented level of natural catastrophes in recent months including devastating floods in New Zealand and Australia, the earthquake in Japan and tornadoes in the US.
Announcing the results, Dr Ward said: "Despite incurring £6.7bn in claims from the costliest first half year on record, Lloyd’s entered the second half of the year with £57bn in net assets to support our business and pay claims." He added that with volatile equity markets and low interest rates, Lloyd's "cannot rely on investment income to subsidise our underwriting" and "must decline under-priced risks".
Must be quake-brain, I can't remember where the New Zealand floods were, although the writing on the wall in the last sentence of the fourth paragraph is quite clear.

More cheerful, if possibly slightly inaccurate, Lloyd's news here.
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