A slump in returns from investments such as bonds hit profits at Lloyd’s of London during the first half of the year.
The insurance market saw pre-tax profits fall to £1.38 billion in the six months ending June 30, compared to £1.53 billion last year. The results were dragged down by a 60% fall in investment returns to £247 million, which have been hurt by the Fed’s decision to scale back quantitative easing. Chairman John Nelson said he remained cautious about the market’s full-year results with the Atlantic hurricane season still in progress. However, he added: “In spite of the difficult economic conditions, it is pleasing to see the Lloyd’s market grow premiums by almost 5% in the first half of the year.
“It shows that disciplined underwriting can co-exist with growth which is vital as we seek to capitalise on the opportunities presented by the Asian and Latin American economies in particular.”
Nelson said he expected to appoint a successor to outgoing chief executive Richard Ward by the end of the year.