Lloyds blames rising claims for profits cut

Sep 25 2008 by Henryk Zientek, Huddersfield Daily Examiner

INSURANCE market Lloyd’s of London today blamed rising claims and lower investment income for a 47% fall in half-year profits.

Lloyd’s chairman Peter Levene said the drop to £949m came as “no surprise” given a softening in rates.

The figures cover the period to the end of June and do not include claims resulting from the recent North Atlantic hurricanes.

Lloyd’s said: “While it is too early to assess the final economic cost of these storms, undoubtedly it will add pressure to underwriting earnings.”

It warned that profitability in many of its lines was “now questionable” with current pricing levels leaving little margin to cover major catastrophe losses.