Lloyds reveals £3.6bn profit

An “exceptionally low” level of catastrophes enabled the Lloyd’s of London insurance market to announce profits of £3.66bn (€5.3bm) for 2006 today.

The market, which is home to 66 insurance syndicates, made losses of £103m (€151.5m) in 2005 after two years of severe hurricanes in the United States.

In addition to the low level of catastrophes in 2006, Lloyd’s said the market had performed well amid strong underlying trading conditions.

However, Lloyd’s chairman Lord Levene said it would be unrealistic to expect such a favourable claims environment to continue this year.

He added: “With a trend for more frequent and severe natural catastrophes, we must continue our focus on underwriting for profit. The market is well prepared to meet these challenges.”