Lloyd's reported a 2005 pretax loss of $181 million compared toa profit of $1.5 billion for the previous year.

|

Lloyd's Chairman Lord Peter Levene said the market posted $5.8billion in net claims for its costliest year ever, exceeding thelosses stemming from the Sept. 11, 2001 World Trade Centerattacks.

|

"For Lloyd's to emerge with such a small loss represents anexcellent performance by the market," Mr. Levene said. "Thatoutcome would have been unthinkable just a few years ago, which isthe true measure of the progress Lloyd's has made."

|

The market's combined ratio for 2005 rose to 111.8 compared with96.6 for 2004.

|

Mr. Levene said Lloyd's performance for the year reflects thenew franchise and flexible capital structures that he asserts haveput a clear focus on profitable underwriting.

|

Lloyd's said it has the capacity for $26 billion of business in2006, an increase of 7 percent from last year.

|

Growth for this year could emerge from China, which last yeargranted Lloyd's a permit to establish an on-shore reinsuranceoperation.

|

Standard & Poor's London-based analyst Marcus Rivaldi calledLloyd's results "credible" and within expectations.

|

He was particularly impressed with Lloyd's solvency ratio of 379(with the higher number the better) that compared to 145 shortlyafter the World Trade Center attack.

|

But rather than the reforms that Mr. Levene lauded, Mr. Rivaldisaid it is the hard-priced market of the past five years that hasserved to shore up the market's finances in such an impressivemanner.

|

As for this year, Mr. Rivaldi said the early indications of theJune and July renewal season indicate more profitable times for thereinsurance sector at least.

|

"It will take a real soft market to see how the reforms bite,but so far the hurricanes keep putting that off," he said.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.