Lloyd’s have released first half figures showing a £0.26 billion profit increase on the same period last year. Lloyd’s also reported an annualised return on capital of 11.7% and a combined ratio of 98%. The key financial figures released were, pre-tax profits of £1.46 billion (H1 2015: £1.20 billion), return on capital of 11.7% (H1 2015: 10.7%), combined ratio of 98% (H1 2015: 89.5%), investment return of 1.8% (H1: 0.6%) and net resources of £26.6 billion. Many witnessed major claim increases in 2016 due partly to the Fort McMurray fires in Alberta, Canada. Premiums continue to be under pressure due to the challenging environment the market is operating in though Lloyd’s financial ratings remain extremely strong with Fitch (AA-), A.M. Best (A) and Standard & Poor’s (A+). Lloyd’s Chief Executive, Inga Beale said, “These results reflect the highly competitive environment we are operating in, but they demonstrate that Lloyd’s is in robust financial shape. Clearly the UK’s referendum on its EU membership is a major issue for us to deal with and we are now focussing our attention on having in place the plans that will ensure Lloyd’s continues trading across Europe.” Lloyd’s Chairman, John Nelson, commented on Lloyd’s global access, “Whilst we are operating in difficult conditions, we have continued to make significant progress in growing our presence in the fast-growth markets across the globe. In 2016 we have applied for onshore reinsurance licences in India and Malaysia as well as opening a new office in Bogota, Colombia. This complements the growth we are seeing in Dubai, China and in our more traditional markets, particularly the United States.”
