Lloyds of London warns of Brexit impact on UK operations
Insurance market posts 22% rise in pre-tax profit to €1.7 billion in first half of 2016
Lloyd’s of London insurance market posted a 22 per cent rise in pre-tax profits to £1.46 billion (€1.7 billion) for the first half of the year. Photograph: iStock
The Lloyd’s of London insurance market posted a 22 per cent rise in pre-tax profits to £1.46 billion (€1.7 billion) in the first half of 2016, as it cautioned on the impact on its business of Britain’s vote to leave the European Union.
The company, which houses around 90 insurance syndicates, focuses on specialty insurance such as marine, energy and political risk.
Investment returns also rose, to 1.8 per cent, from 0.6 per cent a year ago, it said in a trading statement on Thursday.
Lloyd’s of London chairman John Nelson has said the world’s leading specialty insurance market would have to operate some business from the EU after Brexit if Britain fails to keep so-called pass-porting rights for financial companies to sell products across the bloc.
The Brexit vote was “a major issue for us to deal with”, chief executive Inga Beale said in the statement.
“We are now focusing our attention on having in place the plans that will ensure Lloyd’s continues trading across Europe. ”
Lloyd’s saw a sharp rise in its combined operating ratio to 98 per cent, compared with 89.5 per cent a year earlier. A figure below 100 per cent indicates an underwriting profit.
The insurance group said claims had increased in 2016, mainly due to wildfires in Fort McMurray, Canada.