The Lloyd’s of London insurance market reported a 30 per cent drop in pre-tax profit to £2.1bn, hit by a fall in investment returns and pressure on prices.
The market’s return on capital fell to 9.1 per cent from 14.1 per cent a year earlier, and investment return dropped to £400m from £1bn in 2014.
John Nelson, chairman of Lloyd’s, said: “Each year brings a unique set of challenges, requiring determination, innovative thinking and solutions. This year has been no different.
“In a market undeniably tougher than seen for many years, we have had to demonstrate our ability to adapt and take action.
“In these conditions, these results are creditable and a tribute to the continued skill and professionalism of the Lloyd’s market underwriting community.”
Inga Beale, chief executive of Lloyd’s, said: “Lloyd’s is pursuing its strategy to deliver risk solutions to a fast moving world. Business looks to the Lloyd’s market to underwrite policies too complex for others to handle. Protection from cyber-attacks, terrorism and climate change are needed now more than ever.”
More than 80 syndicates underwrite insurance at specialist insurance market Lloyd’s, housed in one of the most recognisable buildings in London’s main financial district, with listed companies including Beazley and Hiscox.
The market’s combined ratio, a measure of underwriting profitability, weakened to 90 per cent from 88.4 per cent in 2014. A level below 100 per cent indicates a profit.
Gross written premiums rose 6 per cent to £26.7bn.