X hits on this document

73 views

0 shares

0 downloads

0 comments

9 / 25

AON BENFIELD

Combined ratio

84.0%

91.3%

86.1%

86.7%

87.8%

89.6%

10%

30%

50%

70%

90%

110%

Chart 6 – Lloyd’s Pro Forma Combined Ratio

Underwriting Profit

As shown in Table 1, Lloyd’s gross premiums written increased by 22% in 2009. Foreign currency movements accounted for 13 percentage points (pp) of this increase, giving a local currency increase in gross premiums written of 8%. Chart 6 shows the development of the combined ratio over the past three years. The 2009 accident year ratio, excluding catastrophes and prior year reserve movements, was 89.6%, compared to 87.8%. Excluding the impact of foreign exchange on non-monetary items, the accident year combined ratio fell to 87.3% in 2009 from 90.5% in 2008. Lloyd’s benefited strongly from a benign hurricane season, particularly in the Gulf of Mexico. Catastrophe losses added only 2.1% (GBP347mn) to the combined ratio in 2009, compared to 12.7% (GBP1,750mn) in 2008.

  • -

    10%

FY 2007 Accident year

FY 2008 Catastrophes

FY 2009 Net Prior Year Development

Source: Lloyd’s

Chart 7 depicts the combined ratio by business category, while Chart 8 illustrates the reserve development by line of business. A split of business by 2009 gross premiums written is given in Appendix 1. In 2009, Reinsurance accounted for 36% of business written (2008: 35%). Property and Casualty accounted for a further 23% (23%) and 20% (21%).

Prior year reserve releases benefited the combined ratio by 5.6% in 2009, down from 9.2% in 2008. Lloyd’s flagged that “future years are likely to see further reductions in the levels of release”3.

3

Lloyd’s Annual Report, 2009

9

Document info
Document views73
Page views73
Page last viewedThu Dec 08 04:13:57 UTC 2016
Pages25
Paragraphs1369
Words6106

Comments