Lloyd’s of London Returns to Profit Despite Hurricane Sandy
By Lianna Brinded | March 27, 2013 7:48 PM EST
Lloyd's of London swung back into profit last year despite being hit by one of the costliest natural disasters on record, Hurricane Sandy, which devastated thousands of homes and businesses in the United States.
According to the special insurance group's annual earnings report on its website, Lloyd's earned £2.77bn ($4.2bn/€3.3bn) last year, compared with a £516m loss in 2011, which was the 'costliest year on record for natural catastrophes.' [Fig. 1]
"The Lloyd's market has posted a strong result. This is despite experiencing one of the costliest natural catastrophes in history, Superstorm Sandy, and incurring net claims of £10bn. While the economic environment remains challenging, the Lloyd's market is capitalised at record levels and our overall financial strength is recognised in our A+ ratings," says Richard Ward, CEO at Lloyd's in the group's earnings statement.
Lloyd's added that the gross written premium - the total amount of business assumed by an insurer before deducting reinsurance and commission costs - reached a record high of £25.5bn.
The group also was hit by £10.1bn worth of net incurred claims which is still down from £12.9bn in 2011.
Lloyd's added that the 2012 investment return is at £1.3bn, up from £995m a year earlier.
In October last year, Sandy swept across the eastern coast of the Americas, up from the Caribbean as far as northeast USA.
As late as January this year, IBTimes UK reported that Fitch Ratings agency estimated that the insurance industry could face a total bill of $20bn.
Lloyd's says that claims included $2.2bn from Sandy, dubbed 'Frankenstorm' by one meteorologist, which has become one of the largest claims in the group's 325 year history.
While Sandy is still one of the costliest claims for insurers in recent years, Hurricane Katrina, which left a $46.6bn insurance bill, is still by far the largest.
Lloyd's Chairman John Nelson reiterated that the group's bumper profits for 2012 show that it has a strong capital base and feeds into the company's strategy to maintain its position as one of the world's largest specialist insurance and reinsurance groups for the next 12 years.
To report problems or to leave feedback about this article, e-mail:
To contact the editor, e-mail:
Join the Conversation
- Travel Alert: Australia Mulls To Review Airport Security Policy, Could Allow Scissors, Metal Cutlery Back In Planes
- 5 Likely Reasons Why You Are Not Getting Hired
- This Is How Obesity Weighs Down Global Economy By 2 Trillion Dollars Every Year
- Consumer Alert: Retailer Simons Goes Out Of Quebec, To Open Five Stores Across Canada
- Signs That You Are A Smartphone Zombie (And The Dangers This Poses)
- Russia Is Ready for Shooting War, Will Likely Win Looming Nuclear Showdown with U.S. – Report
- Microsoft Band Runs Out Of Stock, But Offers $10 Gift Voucher To Wait-Listed Customers
- Google Joins Forces with GoPro Inc with New Google Maps Focusing on Destination
- Target Early Black Friday 2014 Sale Ad Released For Nov. 26, 2014 Includes Deals On Toys, HDTVs And Video Games Such As ‘FIFA 15’ And ‘NHL 15’ For Xbox 360 [WATCH VIDEO]
- 16GB iPhone 6 for $99 at Sam’s Club is the Best 2014 Black Friday Deal Around
- Lumia Update Will Come Soon Confirms Microsoft
- Black Friday And Cyber Monday Sale 2014: AT&T's Cricket Wireless Offers Discounts On Lumia 1320, Galaxy S5, S4 And HTC Desire 510