Lloyd's sees pressure on rates

Lloyd’s of London today announced a £3.8bn (€4.8bn) profit after the insurance market benefited from a limited exposure to catastrophes in 2007.

The market, which is home to 75 insurance syndicates, said it continued to outperform its major international peers following the improvement from the figure of £3.66bn (€4.65bn) reported a year earlier.

While the figures were helped by a favourable environment for claims, following hurricanes in previous years, Lloyd’s said it was now seeing downward pressure on rates and a softening of conditions across all lines of business.

Lord Levene, chairman of Lloyd’s, said: “The need to exercise underwriting discipline and maintain a focus on underwriting for profit rather than market share remains essential.”