6 January 2004, London UK — The Lloyd’s market will have the capacity to underwrite £14.9 billion of business in 2004, Chief Executive Officer Nick Prettejohn announced today.
He said the 2004 figure, which maintains the level of capacity in 2003, underlined Lloyd’s strong capital base and demonstrated discipline in the market.
The year-end 2003 capacity figure is £14.9 billion.
The announcement of capacity for 2004 follows the first business plan approval process under Lloyd’s new Franchise arrangements. Announcing the provisional figure for 2004, Nick Prettejohn said:
“The capacity figure says much about the continued strength and underwriting discipline within Lloyd’s businesses. The market’s priority is to continue to improve the quality of its business, rather than chasing market share.
“The first year of the new Franchise arrangements has helped to ensure that the market’s plans for 2004 are grounded in the reality of external market conditions, to deliver underwriting profit and maximise returns for capital providers.
“The Lloyd’s market is healthy with a firm capital base. Indications for 2003 performance continue to be strong and the current outlook for 2004 is good. We have unrivalled underwriting expertise, stable security ratings, and a diverse base of capital providers who believe in this market’s ability to deliver strong performance.”
Lloyd’s web site: www.lloyds.com
Lloyd’s is the world’s leading insurance market with a capacity to accept insurance premiums of more than £14.4 billion in 2003. It is the world’s second largest commercial insurer and sixth largest reinsurance group. Syndicates underwriting insurance at Lloyd’s cover all classes of business from more than 120 countries worldwide. Approximately five per cent of world reinsurance is placed at Lloyd’s which also accounts for half of the London market’s international insurance premiums. Lloyd’s is regulated by the Financial Services Authority.