Despite substantial catastrophe losses of more than $2 billion in 2004, Lloyd's remained profitable, demonstrating a newfound resilience, according to a report by reinsurance brokerage firm Guy Carpenter & Company Inc.
Geoffrey Bromley, chairman of Guy Carpenter's European and Asian operations, in the firm's third annual review of Lloyd's market, said that where a record year of natural catastrophe insured losses may have proven problematic for Lloyd's in the past, the market is now showing it can handle them.
London-based Guy Carpenter, a subsidiary of New York-headquartered professional services firm Marsh & McLennan Companies, reported the market experienced its third consecutive profitable year.
In its report, "The Lloyd's Market in 2005," Guy Carpenter said Lloyd's posted a pretax gain of ?1.36 billion ($2.47 billion U.S.) in 2004 despite absorbing ?1.19 billion ($2.16 billion U.S.) of additional catastrophe losses relative to 2003.
The report highlights positive indicators for Lloyd's and other positive findings.
Also today, Willis Group Holdings released its own report on the Lloyd's market, titled "Lloyd's–Profile and Reality."
Grahame Millwater, chairman and CEO of Willis Re, said his company's analysis and observations "are clearly encouraging for the future," adding, "However, simply being well positioned is not necessarily enough. Lloyd's will need the full depth of its remarkable range of skills to navigate the pressures ahead."
Copies of Guy Carpenter's report can be downloaded at www.guycarp.com. Printed copies are available by sending an e-mail to marketing@guycarp.com.
The Willis report is available at www.willis.com/news/Publications/LloydsProfileReality.pdf.
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