General insurer Lloyd's has recorded a successful year for 2006, posting profits of almost GBP3.7 billion before tax.
<p>The insurance specialist saw strong underlying conditions and an exceptionally low level of catastrophes for the year. Its combined ration also compared well with its international peer group and holds a strengthened balance sheet. <br /><br />The group saw a combined ratio of 83.1% which compares favorably with an estimated average of 93% for US property and casualty insurers â€“ 95% for US re-insurers, 94% for European insurers and re-insurers and, 86% for Bermudian insurers and re-insurers. It also saw a 14.8% increase in central assets to GBP1,454 million. <br /><br />Commenting on the results, chairman of Lloyd's, Lord Levene, said: 2006 was an excellent year for Lloyd's and the market has performed well. During the year, we benefited from strong underlying conditions and an exceptionally low level of catastrophes. However, it would be unrealistic to expect such a favorable claims experience this year. 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.</p>