Lloyd’s of London has reported a return to profitability in the first half of 2018, following a year of catastrophic losses.
The insurance market has announced profit for the period January-June 2018 of £0.6 billion. In 2017, it suffered losses of £2 billion, driven by a stream of highly costly natural disasters, including Hurricanes Harvey, Irma and Maria; this was its first annual loss in over half a decade. Claims hit £4.5 billion for the year as a whole.
However, although Lloyd’s has returned to profit, the figures recorded present a significant drop from the £1.2 billion reported in the same period in 2017.
“We always know these catastrophes are going to come along – that’s what we’ve been doing for 300 years,” said Inga Beale, outgoing Chief Executive of Lloyd’s. “We’re in the business of taking risk away from businesses and individuals and taking it onto our balance sheet, which is stronger than it’s ever been.”
Beale added that the market is now focusing on climate change, and its associated risks to business.