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Wednesday 28 October, 2015

Lloyds Of London

Lloyd's 2015 Q3 Interim Management Statement

RNS Number : 7244D
Lloyds Of London
28 October 2015
 

28 October 2015

 

Lloyd's publishes Interim Management Statement Q3 2015

 

 Highlights:

·      Excess of central assets over solvency shortfalls of £3,259m.

·      During the period financial markets displayed a high level of volatility with losses generated across most risk assets. For Lloyd's central assets, the modest investment loss has reduced the surplus before tax. This has no material impact on our capital strength and solvency position.

The Society of Lloyd's is today publishing its Interim Management Statement for the nine month period to 30 September 2015. This statement describes the unaudited consolidated financial position of the Society itself, its subsidiaries and the Central Fund and does not include results of the syndicates operating in the Lloyd's Market.

Operating Review

Strategy

Lloyd's long-term strategy - Vision 2025 - is to be the global centre for specialist insurance and reinsurance. Lloyd's Strategy 2015 - 2017 outlines the plans of the market and Corporation over the next three years in the delivery of this vision.

Financial Review

Excess of central assets over solvency shortfalls

 

Management's estimate of the excess of central assets over solvency shortfalls has increased during the period to £3,259m, comprising:

 

 

30 Sep 

2015 

31 Dec 2014

 

£m 

£m

Society net assets

1,719 

1,693

Subordinated liabilities

886 

885

Central assets

2,605 

2,578

Callable layer

799 

779

Other solvency adjustments

(128)

(112)

Central assets for solvency purposes

3,276 

3,245

Solvency shortfalls

(17)

(19)

Excess of central assets over solvency shortfalls

3,259 

3,226

 

 

Investments

 

Financial markets displayed a high degree of volatility in the third quarter as concerns over weakness in China caused investors to flee both emerging and developed equity markets. Losses were generated across most risk assets whilst bond investments generated small capital gains as both increased demand and a diminished likelihood of near term rate rises pushed yields to an even lower level. Overall, the Society's investments have lost £6m, or 0.2% during the first 9 months of 2015.

ENDS

 

For further information, please contact:

 

Media Relations:

 

Alex Dziedzan or Annie Roberts

Tel: +44 (0)20 7327 6125 Email: [email protected] 

Tel: +44 (0)20 7327 5514 Email: [email protected] 

 

Investor Relations:

 

Debbie Sallas or Michelle Cunningham

Tel: +44 (0)20 7327 5783 Email: [email protected]

Tel: +44 (0)20 7327 5434 Email: [email protected]

 

Notes to Editors

1.             A copy of Lloyd's 2014 Annual Report can be accessed at www.lloyds.com

2.             Central assets include the assets of the Central Fund and the other assets of the Corporation. In aggregate, the value of Lloyd's central assets, excluding the callable layer and the liability in respect of the subordinated debt and securities, amounted to £2,605m at 30 September 2015. The Society financial statements are prepared in accordance with IFRS.

3.             Callable layer:  Central Fund assets may be supplemented by a 'callable layer' of up to 3% of members' overall premium limits in any one calendar year. These funds would be drawn from premium trust funds.

4.             This press release includes forward-looking statements. These statements are based on currently

available information and consistent accounting policies as applied at 31 December 2014. They reflect

Lloyd's current expectations, projections and forecasts about future events and financial performance. All

forward-looking statements address matters that involve risks, uncertainties and assumptions. Based on a

number of factors, actual results could vary materially from those anticipated by the forward-looking

statements. These factors include, but are not limited to, the following:

Rates and terms and conditions of policies may vary from those anticipated.

Actual claims paid and the timing of such payments may vary from estimated claims and estimated timings of payments, taking into account the preliminary nature of such estimates.

Claims and loss activity may be greater or more severe than anticipated, including as a result of natural or man-made catastrophic events.

Competition affecting the basis of pricing, capacity, coverage terms or other factors may be greater than anticipated.

Reinsurance placed with third parties may not be fully recoverable, or may not be paid on a timely basis, or such reinsurance from creditworthy reinsurers may not be available or may not be available on commercially attractive terms.

Developments in the financial and capital markets may adversely affect investments of capital and premiums, or the availability of equity capital or debt.

• Changes in legal, regulatory, tax or accounting environments in relevant countries may adversely affect

(i) Lloyd's ability to offer its products or attract capital, (ii) claims experience, (iii) financial return, or

(iv) competitiveness.

• Economic contraction or other changes in general economic conditions could adversely affect (i) the market for insurance generally or for certain products offered by Lloyd's, or (ii) other factors relevant to Lloyd's performance.

• The foregoing list of factors is not comprehensive, and should be read in conjunction with other cautionary statements that are included herein or elsewhere. Lloyd's undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

 

5.             Foreign exchange rates may materially fluctuate from the rates prevailing at 30 September 2015

(£1 = US$1.51, £1 = €1.36)



.

About Lloyd's
Lloyd's is the world's only specialist insurance and reinsurance market that offers a unique concentration of expertise and talent, backed by strong financial ratings and international licences. It is often the first to insure new, unusual or complex risks, providing innovative insurance solutions for local, cross border and global risks. Its strength lies in the diversity and expertise of the brokers and managing agents working at Lloyd's, supported by capital from across the world. In 2015, more than 90 syndicates are underwriting insurance and reinsurance at Lloyd's, covering all lines of business from more than 200 countries and territories worldwide. Lloyd's is regulated by the Prudential Regulatory Authority and Financial Conduct Authority.


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