Lloyd’s takes huge profit dip

Lloyd’s has announced pre-tax profits are down 30% compared with last year after being hit by a fall in investment returns and experiencing pressure on prices.

Lloyd’s of London reported a drop in pre-tax profit to £2.1 billion in 2015, compared with £3.0 billion in 2014.

However, gross written premiums increased 6% to £26.7 billion from £25.3 billion in 2014.

Chairman John Nelson says Lloyd’s is in the midst of a challenging macro-economic climate.

“Each year brings a unique set of challenges, requiring determination, innovative thinking and solutions. This year has been no different,” he says

“In a market undeniably tougher than seen for many years, we have had to demonstrate our ability to adapt and take action. In these conditions, these results are creditable and a tribute to the continued skill and professionalism of the Lloyd’s market underwriting community.”

Meanwhile, Lloyd’s Chief Executive Inga Beale says manmade risks continue to rise and are becoming the predominant risks facing the world over natural disasters.

Beale says Lloyd’s is pursuing its strategy to deliver risk solutions to a fast moving world, as business looks to the Lloyd’s market to underwrite policies too complex for others to handle.

“Protection from cyber-attacks, terrorism and climate change are needed now more than ever,” Beale says.