Lloyd's returns to profitability in 2002
The Lloyd’s of London insurance market announced today it had returned to profitability during 2002.
Under its new annual accounting system the world’s oldest insurance market recorded a profit of £834m (€1,211m) for the year.
Lloyd’s, which traditionally reports its results on a three-year basis, credited its performance to a combination of steep increases in insurance premiums, very low claims and disciplined underwriting by the market.
It is the first time the market has made profit since 1996.
Lloyd’s recorded a loss of £3.11bn (€4.51bn) for 2001 following the September 11 terrorist attacks and other catastrophes including an oil rig accident and the attacks on an airport in Sir Lanka.
Chief executive of Lloyd’s Nick Prettejohn said: “These results demonstrate a very strong performance.
“It was the market’s resilience and disciplined approach, at a time when the industry as a whole has faced many difficulties, that generated 2002’s healthy result.”
Lloyd’s switched to reporting its results on an annual basis last year as part of a raft of reforms to modernise the market and make it more transparent and easier to compare with other major insurance centres such as Bermuda.
Other changes included introducing a new franchise structure to the market and phasing out the number of Names who backed the market with unlimited liability.
