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Disasters cause profits at insurance market Lloyds of London to fall 43 percent in 2010
Lloyd’s of London said Wednesday that its profit dropped by 43 percent last year as the insurance market took big losses from earthquakes in Chile and New Zealand and from BP’s oil rig spill in the Gulf of Mexico.
Lloyd’s said its full year pretax profit was 2.2 billion pounds ($3.5 billion), down from 3.9 billion pounds in 2009. Gross premium income rose 3 percent to 22.6 billion pounds.
The market’s combined ratio — the measure of premiums against claims — was 93.3 percent, compared with 86.1 percent for 2009. Any measure below 100 percent indicates an underwriting profit, and a lower number indicates higher profitability.