The market will now be returning to profit once more.
Lloyds of London has released their most recent insurance news, and it sounds very positive after experiencing no major natural disasters in the first half of the year, allowing the market to return to half-year profitability.
The pre-tax profit that the insurance market has estimated for the first half of 2012 is £1.53 billion.
When compared to the first half of 2011, in which the claims from the March tsunami in Japan were coming in, Lloyd’s of London had experienced a loss of £697 million. The market stated that this year, the claims had been down by a full third.
This insurance news was certainly welcome after such a challenging first half in 2011.
Richard Ward, the chief executive of Lloyd’s of London, said that “This is a welcome return to profit for the market, after a six-month period that could not be in greater contrast to the first half of 2011.” He also pointed out that “On the continent, in Greece and Spain, people still need to manage their assets and we are here to help them.” Ward explained that the outcome has highly benefitted from the more favorable claims environment this year.
According to the market, the net claims for 2012 up to June 30 totaled £4.6 billion. During the same period in 2011, the total had been £6.7 billion. The chairman of Lloyd’s of London, John Nelson, described the first six months of the year as having been “strong”. He also stated that the market had found its upgraded credit rating highly favorable, when it was set to positive by Standard & Poor’s, the rating agency. It had previously been designated as stable.
Ward also pointed out in an insurance news interview, that Lloyd’s of London had not been immune to the economic downturn in Europe, just like every other large business. He explained that this presented a struggle for them, but that it was also viewed as a fresh opportunity. As the entire market is based on the risk industry, it opened the door to assist people in managing their risks. In Spain and Greece, that need is ongoing, as is the market’s dedication to assist.