Natural catastrophes push Lloyd's of London to £2 billion loss

Cornelia Mascio
Marzo 21, 2018

Major claims for Lloyd's more than doubled from a year earlier, to £4.5 billion in 2017.

According to A.M. Best, the industry recorded pre-tax operating income of $21.5 billion in 2017, a decline of 47.4% when compared with 2016, and, combined with an increase in realized capital gains of $11.2 billion and a $7.5 billion reduction in federal taxes incurred, the industry's net income for 2017 totalled $40.8 billion, relatively unchanged from 2016.

GWP rose to £33.6bn in 2017 from £29.9bn in 2016 while returns ticked up to £1.8bn (2016: £1.3bn).

The group's annual report released alongside the results showed that Ms Beale still landed a £405,000 bonus for 2017 - up from £400,000 the previous year - despite the huge losses.

A level above 100 percent indicates a loss.

Back in September, Lloyd's had reported a 16 per cent dip in profit for the first half of the year, but did say then it was yet to take stock of the effects of hurricanes in the Caribbean and the US.

"The market experienced an exceptionally hard year in 2017, driven by challenging market conditions and a significant impact from natural catastrophes", Lloyd's chief executive Inga Beale said in the release.

These factors mean that for the first time in six years Lloyd's is reporting a loss.

She concluded: "Lloyd's is here to support customers when it matters most, providing the financial support to enable businesses, governments, and most importantly people to recover and rebuild their lives as quickly as possible and I'm proud of the market's response".

Lloyd's also confirmed that its planned European Union subsidiary would be operational by July ahead of Brexit.

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