Lloyd's pre-tax profit unchanged for 2014

Lloyd's of London, the world's specialist insurance and reinsurance market, on Thursday posted a pre-tax profit of £3.2 billion (S$6.53 billion), unchanged from 2013.

Return on capital was also lower at 14.7 per cent, down from 16.2 per cent in 2013, due to increased competition.

The flat growth is attributable to a relatively benign year, as insurance premiums fall.

Lloyd's combined ratio - a measure of an insurer's underwriting profitability - was 88.1 per cent last year, a weaker showing than the 86.8 per cent the year before.

Gross written premiums last year came in at £25.3 billion, down slightly from £25.6 billion a year ago.

Lloyd's CEO, Inga Beale, said this was a "strong set of results", "despite challenging market conditions".

"In the face of global challenges, an abundance of capital and the low interest rate environment, Lloyd's is being proactive in seizing the opportunities out there for growth and diversification. We will continue to engage with our global network of syndicates and brokers, to ensure Lloyd's remains at the forefront of innovation in the industry."