Lloyd’s of London has announced its annual results with a stable profit of $6 billion while its return on capital dropped from 16.2% in 2013 to 14.7%.
The pre-tax profit didn’t budge over the previous 12 months while the combined ration hit 88.1% compared with 86.8% in 2013.
Gross written premium also took a slight dip from $48.7 billion to $48.1 billion this term.
The company said the result was “driven by a relatively benign year for major natural catastrophes, favourable prior year development, and an improved investment return,” according to a statement.
Lloyd’s CEO, Inga Beale
, said the results are strong in the face of difficult market conditions.
“This is a strong set of results for Lloyd’s, despite challenging market conditions. The robust performance of the market in 2014 reflects a collective achievement, of which we should be proud.
“In the face of global challenges, an abundance of capital and the low interest rate environment, Lloyd’s is being proactive in seizing the opportunities out there for growth and diversification.
“We will continue to engage with our global network of syndicates and brokers, to ensure Lloyd’s remains at the forefront of innovation in the industry.”
John Nelson, Lloyd’s chairman, echoed Beale’s sentiments and noted that the company is still on track to meet its growth aims for 2025.
“This is another excellent set of results for the Lloyd’s market, achieved against a backdrop of low interest rates and softening premium rates.
“We are making substantial progress against our long term growth strategy, Vision 2025, with plans to modernise the market and international growth gaining real momentum.
“As regards global access, we have made really excellent progress.
“Just this month Lloyd’s Dubai platform opened along with our new branch of Lloyd’s China in Beijing. We are opening our office in Mexico this year and the Indian government has now passed legislation to allow Lloyd’s to operate onshore in India.
“We are continuing to work hard to open up markets such as Turkey, Malaysia and Colombia.”
All currencies were converted from GBP to AUD using xe.com on 27/03/2015.