{"id":2226,"date":"2013-03-27T12:22:14","date_gmt":"2013-03-27T10:22:14","guid":{"rendered":"http:\/\/ourblog.greenwoods.org\/?p=2226"},"modified":"2013-03-27T12:22:14","modified_gmt":"2013-03-27T10:22:14","slug":"lloyds-announces-annual-results-for-2012-eur","status":"publish","type":"post","link":"https:\/\/greenwoods.org\/lloyds-announces-annual-results-for-2012-eur\/","title":{"rendered":"Lloyd\u2019s announces annual results for 2012 (EUR)"},"content":{"rendered":"<p><a href=\"http:\/\/greenwoods.org\/wp-content\/uploads\/2013\/03\/IC_InternalshotofRostrumandbell_thumb.jpg\"><img decoding=\"async\" alt=\"IC_InternalshotofRostrumandbell_thumb\" src=\"http:\/\/greenwoods.org\/wp-content\/uploads\/2013\/03\/IC_InternalshotofRostrumandbell_thumb-150x135.jpg\" width=\"150\" height=\"135\" \/><\/a><\/p>\n<p>Wed 27 Mar 2013<\/p>\n<p>Lloyd\u2019s, the world\u2019s specialist insurance market, today announced a profit of \u20ac3.41 billion for 2012. The return to profit follows a loss of \u20ac619 million in 2011, which was the costliest year on record for natural catastrophes.<\/p>\n<p>Controlled growth saw gross written premium income reach a record high of \u20ac31.4 billion, partly as a result of average rate rises of 3%. Total net incurred claims were \u20ac12.4 billion, down from \u20ac14.8 billion in 2011.<\/p>\n<p>Claims included US$2.2 billion (\u20ac1.7 billion) from Superstorm Sandy which struck the Caribbean and North America in October 2012, becoming one of the largest claims in Lloyd\u2019s 325 year history. Lloyd\u2019s central assets were also at record levels of \u20ac3.1 billion.<\/p>\n<p>Lloyd\u2019s CEO Richard Ward said: \u201cThe Lloyd\u2019s market has posted a strong result, despite incurring \u20ac12bn of total net claims in 2012, including Superstorm Sandy, one of the costliest natural catastrophes in history.<\/p>\n<p>\u201cWhile the economic environment remains challenging, the Lloyd\u2019s market is capitalised at record levels and our overall financial strength is recognised in our A+ ratings.\u201d<\/p>\n<p>Chairman of Lloyd\u2019s John Nelson said: \u201cIn 2012 we launched Vision 2025 \u2013 the market\u2019s vision for profitable, sustainable growth, focusing on the opportunities that lie in the high growth economies around the world. These results, combined with our capital strength, are a good platform from which to work towards our vision of strengthening our position as the global centre for specialist insurance and reinsurance in 2025.\u201d<\/p>\n<p><b><br \/>\nFinancial Highlights:<\/b><\/p>\n<ul>\n<li>A profit before tax of \u20ac3,408 million (\u00a32,771 million: 2011 loss of \u00a3516 million).<\/li>\n<li>A combined ratio of 91.1% (an improvement of 15.7 percentage points from 106.8% in 2011) compares favorably with our peers: 107% for US property and casualty insurers; 96% for US reinsurers; 91% for Bermudian insurers and reinsurers; and 98% for European insurers and reinsurers.<\/li>\n<li>Total resources of the Society of Lloyd&#8217;s and its members at \u20ac72,903 million (\u00a359,271 million: 2011 \u00a358,870 million).<\/li>\n<li>Controlled premium growth of 9% (2012 \u00a325,500 million, 2011 \u00a323,477 million), which includes an average 3% rate increase.<\/li>\n<li>Investment return of \u20ac1,613 million (\u00a31,311 million: 2011 \u00a3995 million).<\/li>\n<li>Central assets of \u20ac3,057 million (\u00a32,485 million: 2011 \u00a32,388 million).<\/li>\n<li>Prior year reserve surplus releases of \u20ac1,662 million (\u00a31,351 million: 2011 \u00a31,173 million)<\/li>\n<\/ul>\n<p><b>For further information, please contact:<\/b><\/p>\n<p><b>Matt Beasley &#8211; Media<\/b><br \/>\nTel: +44 (0)20 7327 5514 Email: <a href=\"mailto:matt.beasley@lloyds.com\">matt.beasley@lloyds.com<\/a><\/p>\n<p><b>Sophie Adams \u2013 Investor Relations<\/b><br \/>\nTel: +44 (0)20 7327 5922 Email: <a href=\"mailto:sophie.adams@lloyds.com\">sophie.adams@lloyds.com<\/a><\/p>\n<p><b>Notes to Editors:<\/b><\/p>\n<ol start=\"1\">\n<li>A copy of Lloyd\u2019s 2012 Annual Report can be accessed at <a href=\"http:\/\/www.lloyds.com\/2012annualresults\">www.lloyds.com\/2012annualresults<\/a><\/li>\n<li>A combined ratio is a measure of an insurer\u2019s underwriting profitability based on the ratio of net incurred claims plus net operating expenses to net earned premiums. A combined ratio of 100% is break even (before taking into account investment returns). A ratio less than 100% is an underwriting profit.<\/li>\n<li>Central assets include the assets of the Central Fund and the other assets of the Corporation. In aggregate, the value of Lloyd\u2019s central assets, excluding the callable layer and the liability in respect of the subordinated debt and securities, amounted to \u20ac3,057 million (\u00a32,485 million) at 31 December 2012. The Society financial statements are drawn up under IFRS.<\/li>\n<li>Members\u2019 resources operate on a several basis and are only available to meet each member\u2019s share of claims. Central assets are available at the Council\u2019s discretion to meet the liabilities of any member on a mutual basis.<\/li>\n<li>The results ultimately attributable and distributable to members are determined in proportion to their share in each syndicate for each underwriting year of account. In accordance with this, the 2010 year of account has closed at 36 months with a net profit of \u20ac678 million (\u00a3551million) at 31 December 2012 rates of exchange. This comprises a surplus on 2009 and prior years reinsured into 2010 of \u20ac1,220 million (\u00a3992million) and a pure year loss of \u20ac542 million (\u00a3434 million). Years of account in run-off during 2012 reported a loss of \u20ac30 million (\u00a324 million).<\/li>\n<li>This press release includes forward-looking statements. These statements are based on currently available information and consistent accounting policies as applied at 31 December 2012. They reflect Lloyd\u2019s current expectations, projections and forecasts about future events and financial performance. All forward-looking statements address matters that involve risks, uncertainties and assumptions. Based on a number of factors, actual results could vary materially from those anticipated by the forward-looking statements. These factors include, but are not limited to, the following:<br \/>\n&#8211; Rates and terms and conditions of policies may vary from those anticipated.<br \/>\n&#8211; Actual claims paid and the timing of such payments may vary from estimated claims and estimated timings of payments, taking into account the preliminary nature of such estimates.<br \/>\n&#8211; Claims and loss activity may be greater or more severe than anticipated, including as a result of natural or man-made catastrophic events.<br \/>\n&#8211; Competition affecting the basis of pricing, capacity, coverage terms or other factors may be greater than anticipated.<br \/>\n&#8211; Reinsurance placed with third parties may not be fully recoverable, or may not be paid on a timely basis, or such reinsurance from creditworthy reinsurers may not be available or may not be available on commercially attractive terms.<br \/>\n&#8211; Developments in the financial and capital markets may adversely affect investments of capital and premiums, or the availability of equity capital or debt.<br \/>\n&#8211; Changes in legal, regulatory, tax or accounting environments in relevant countries may adversely affect (i) Lloyd\u2019s ability to offer its products or attract capital, (ii) claims experience, (iii) financial return, or (iv) competitiveness.<br \/>\n&#8211; Economic contraction or other changes in general economic conditions could adversely affect (i) the market for insurance generally or for certain products offered by Lloyd\u2019s, or (ii) other factors relevant to Lloyd\u2019s performance.<br \/>\n&#8211; The foregoing list of factors is not comprehensive, and should be read in conjunction with other cautionary statements that are included herein or elsewhere. Lloyd\u2019s undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.<\/li>\n<li>Foreign exchange rates may materially fluctuate from the rates prevailing at 31 December 2012 (\u00a31 = US$ 1.63, \u00a31 = \u20ac1.23). Premiums, claims and investment income are translated at the average exchange rate for 2012 (\u00a31 = US$1.59, \u00a31 = \u20ac1.23).<\/li>\n<\/ol>\n<p>[i] Insurance Information Institute estimate<br \/>\n[ii] Reinsurance Association of America<br \/>\n[iii] Company data (17 Bermudian companies)<br \/>\n[iv] Company data (8 European companies)<\/p>\n<p><b>About Lloyd\u2019s<\/b><br \/>\nLloyd&#8217;s is the world&#8217;s specialist insurance market and occupies fifth place in terms of global reinsurance premium income, and is the largest surplus lines insurer in the US. In 2013, 89 syndicates are underwriting insurance at Lloyd&#8217;s, covering all classes of business from more than 200 countries and territories worldwide. Lloyd&#8217;s is regulated by the <a href=\"http:\/\/www.fsa.gov.uk\/\" target=\"_blank\">Financial Services Authority<\/a>.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wed 27 Mar 2013 Lloyd\u2019s, the world\u2019s specialist insurance market, today announced a profit of \u20ac3.41 billion for 2012. The return to profit follows a loss of \u20ac619 million in 2011, which was the costliest year on record for natural catastrophes. Controlled growth saw gross written premium income reach a record high of \u20ac31.4 billion, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[50],"tags":[],"_links":{"self":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/posts\/2226"}],"collection":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/comments?post=2226"}],"version-history":[{"count":0,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/posts\/2226\/revisions"}],"wp:attachment":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/media?parent=2226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/categories?post=2226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/tags?post=2226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}