Lloyd’s reports challenging 2017

Lloyd’s of London reported a 16 percent fall in half-year pre-tax profit recenlty, and is set to face further challenges in 2017, given the fact that it is still yet to finalise the impact of hurricanes Harvey and Irma.

The unlisted company, which forms the world’s largest specialist insurance market, said it made GBP1.22 billion (USD1.63 billion) in profit before tax in the six months to the end of June, down from GBP1.46 billion a year earlier. Its return on capital worsened to 8.9 percent from 11.7 percent, according to a CNBC report.

Gross premiums rose to GBP18.9 billion compared to GBP16.3 billion last year, and its combined ratio improved to 96.9 percent from 98 percent in 2016 a year ago.

Lloyd’s of London chief executive Inga Beale said the results reflected the challenging conditions that have shaped the sector over recent years. These include pressure on pricing from excess capital and low interest rates.

While the firm described the first six months of the year as a “relatively benign loss period” it highlighted a series of powerful hurricanes that had recently ripped through the Caribbean and the US, causing catastrophic damage to property and infrastructure.