Lloyd’s of London suffers 16% drop in profit during first half of the year

Chief executive Inga Beale said the figures 'reflect the challenging conditions that have shaped the sector over recent years'

Lloyd’s of London is one of dozens of financial institutions committed to setting up in Europe to keep functioning after Brexit (Reuters)

Lloyd’s of London, the specialist insurance and reinsurance market, has reported a 16 per cent fall in profits for the first half of 2017.

The market on Thursday said that Lloyd’s had made a profit of £1.2bn in the first six months of the year, down from £1.4bn during the same period a year earlier. Investment return fell from 1.8 per cent to 1.5 per cent and the return on capital declined from 11.7 per cent to 8.9 per cent.

Chief executive Inga Beale said that the figures “reflect the challenging conditions that have shaped the sector over recent years”.

“Our focus on maintaining a strong underwriting discipline and concentrating on profitable lines of business is showing signs of success but we cannot allow that focus to waver if we are to continue to ensure the Lloyd’s platform is the most attractive option for customers,” she said.

The latest figures also do not take into account the recent storms in the Caribbean and the US. Before the latest bout of hurricanes, 2017 had been a “benign loss period”, according to Lloyd’s.

Lloyd’s of London has been one of dozens of financial institutions that has committed to setting up operations in Europe in order to keep functioning after Brexit.

At the end of March, Lloyd’s committed to establishing a subsidiary in Brussels.