Moody’s predicts Lloyd’s profit of £1bn+
Days before Lloyd’s is due to publish its 2004 Global financial results, ratings agency Moody’s has predicted that Lloyd’s is likely to produce a profit of £1.2bn – the equivalent of 9 percent of capacity – this year.
However, the rating agency also warned that it was scaling back its forecasts for the 2002 year largely because of recent reserve deterioration and costs relating to run-off syndicates.
In recent months, a number of syndicates – including the defunct HIH backed Cotesworth syndicates – have revealed late deterioration on the 2002 underwriting year.
Moody’s has also lowered its forecast for the 2004 year of account to 8 percent of capacity – the equivalent of £1.2bn – because of the impact of the hurricane losses.
The rating agency is, however, maintaining its forecast of 15 percent for the 2003 underwriting year (£2.2bn) meaning that Lloyd’s should record profits totalling £6bn between 2002 and 2005.