Natural disasters eat into Lloyd's profit |
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Published
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Thu, 07 Apr 2005 01:00
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It wouldn’t be wrong to term the last year as a year of disaster, especially, insurance companies won’t mind, since the adversity has reflected on their profits too.
Take for instance London-based Lloyd’s, which has the largest insurance market presence in the world have reported record natural catastrophe payouts in 2004.
| The company said the four hurricanes which hit parts of the United States last year made it bleed £1.2 billion - half the claim Lloyd’s paid at the time of 9/11 attack.
Lloyd’s said even the biggest disaster, the Asian tsunami that took place at the end of last year cost them only £100 million.
The US storm-related claims wiped out Lloyd’s £530 million pre-tax profits, reducing the total to £1.36 billion.
Lloyd's profits further took a beating of £323 million after it settled a dispute with six insurers over the cover bought to protect its Central Fund reserves.
Despite turmoil, Lloyd’s said its performance was much better when compared to international rivals, with all classes of business showing profitability except for motor insurance that showed small loss. The maximum profitability came from aviation as there were less number of jet losses and premiums rose.
Meanwhile, Lloyd’s said future market conditions remain profitable but competition is increasing in many products.
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