Profits rise to GBP3.2bn for Lloyds of London

The Lloyds of London insurance market has seen a 14 percent rise in profits for 2013 to GBP3.2 billion.

The results are the first since Lloyds appointed Inga Beale to be its new chief executive. The London market saw GWP reach GBP26.1 billion, rising from GBP25.5 billion last year. The figures were further boosted by a GBP500 million drop in total net incurred claims, which fell to GBP9.6 billion, of which major claims represented GBP873 million.

Lloyd's chairman John Nelson said that reduced investment income and high capital levels had continued to enter the market, putting pressure on pricing.

"These conditions look set to persist. I therefore expect increased competitive pressure on the market to remain in 2014. This underlines the need for continued underwriting discipline as we seek to maintain and reinforce our position as the global centre for specialist insurance and reinsurance," Nelson said.

Beale attributed the results to a combination of disciplined underwriting and a benign year for major catastrophes.