Lloyd's of London Reports Rebounding Profits

From Reuters

The Lloyd's of London insurance market, which reports results three years in arrears because of long delays in settling claims, said today that profits rebounded strongly in 1986.

It put pretax profit for the year at $1 billion at current exchange rates, more than three times its profits of $303 million in 1985.

The latest figures show underwriting profit of $1.15 billion and total net premium income of $5.75 billion.

Lloyd's Chairman Murray Lawrence said that although prospects for 1987 were encouraging, results for the next three years would be less spectacular, with marine and aviation markets in particular unlikely to produce satisfactory profits in 1988 and 1989.

"There are signs that some important areas of the market are approaching the bottom of the trough, and I believe that during 1990, rates in these areas should begin to harden and move upward to more realistic levels," he said.

The marine market had an underwriting return of 19.7% before currency gains, but excessive capacity and worsening claims were producing unfavorable conditions.

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