Lloyd`s To Return To Profit In 2002
Tuesday, March 11th, 2003 Property Risk ManagementLloyd's of London is on track to record profits of about £1.6 billion ($2.58 billion) for the 2002 year of account and £1.4 billion ($2.24 billion) for 2003, according to Moody's Investors Service in London. Lloyd's has not reported a profitable year since 1997, and Moody's predicts that Lloyd's will post a marketwide loss of £2.2 billion ($3.52 billion) for the 2001 year of account—the next to close under the market's three-year accounting system. Still, the ratings agency said that improved rates and increased writings in 2002 and 2003 should lead to substantial profits for those years. "Lloyd's in the previous upcycle showed its ability to rebound from a period of substantial losses, and history is likely to repeat itself," Mark Hewlett, managing director of Moody's European Insurance Division, said in a statement.
