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About Lloyd’s. Quick Tour. Lloyd’s history, market structure and core strengths. Click HERE for Tutorial. Click HERE to launch dashboard. Recent Updates: June 2010 Update of the geographic profile of insurance, growth and outlook. . > www.lloyds.com/QUICKTOUR. - PowerPoint PPT PresentationTRANSCRIPT
Quick Tour
FOR BROKERS & MANAGING AGENTS
> www.lloyds.com/QUICKTOUR
About Lloyd’s
Recent Updates: June 2010
Update of the geographic profile of insurance, growth and outlook
Lloyd’s history, market structure and core strengths
DisclaimerDisclaimer
Click HERE for Tutorial
Click HERE to launch dashboard
© Lloyd’sQUICK TOUR (About Lloyd's)2
Content
History Marketstructure
GeographicProfile
Global Network
Core Strengths
Clic
k B
ox t
o n
avig
ate
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)3
Navig
ati
on
About
QUICK TOUR is designed to be used as a dashboard (in PowerPoint Show Mode).
This enables quick navigation to areas of interest using the various dashboard tools summarised below.
Click Any Box to navigate to
area of interest
© Lloyd’s
Geogr aphic spl it of Ll oyd’s – Over viewLicence Netw or k Mar ket Intel l igence Events Pr ogr amme Br oker Rel at ionship CEO Sur vey Cover hol der Init iat ivesCONTENT Offi ce Netw or kInter nat ional Mar kets
Source: Lloyd’s, Annual Report, (March 2010), www.lloyds.com/Lloyds_Market/Financial_performance/Financial_reports/2009_Annual_Report.htm
US41%
UK
20%Europe
16%
Other Americas
6%
Central Asia & Asia Pacific
9%Rest of
the World
4%
Canada
4%
Click Any Top Box to navigate to
any other section
Click Top Left Box to return to CONTENT
© Lloyd’s
Content
Inter nat ional Mar kets
2010 Pr ior it ies
Cli
ck
Bo
x t
o n
av
igate
Str ategic Review
Mar ket Devel opment
Factor s
Inter nat ional Mar kets Licence Netw or k Mar ket Intel l igence Events Pr ogr amme Br oker Rel at ionship CEO Sur vey Cover hol der Init iat ivesCONTENT Offi ce Netw or k
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)4
HistoryFrom Coffee House… to reconstruction
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)5
From Coffee house… to Lloyd’s members
1689
Ships and goods insured by wealthy individuals
acting on a personal basis.
Lloyd’s Coffee House; first recorded February
1689.
Importance of information.
1800 – 1850s
Development of the concept of “Lloyd’s member”.
Development of syndicates
1712 First steam engine
1750s Beginning of the Industrial Revolution
1805 Battle of Trafalgar
1876 Telephone invented
Historical Context
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)6
1904 1911 1960s
From marine… to every type of insurance
1906 San Francisco earthquake
1917-1990 Rise and fall of Communism
1914-1918 1939-1945 The world at war
1969 Man on the moon
Historical Context
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)7
Piper Alpha Asbestosis Hurricane Hugo
Exxon Valdez Hurricane Andrew
European storms
…to a string of lossesHistory Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)8
From Reconstruction… to new structure
1996
Reconstruction & Renewal
Corporate members introduced since 1994.
Equitas reinsures liabilities from 1992
and prior years.
2001
Lloyd’s regulated by the FSA.
2002
Governance structure amended.
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)9
Market StructureThe market place and its stakeholders…
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)10
Lloyd’s is different
Lloyd’s is different
Lloyd’s is a Society of Members that operates as an insurance market.
Lloyd’s is not an insurance company.
Lloyd’s has members. It does not have shareholders.
Lloyd’s consists of a number of participants
The Society of Lloyd’s. Lloyd’s Members. Members Agents. Lloyd’s Syndicates Lloyd’s Managing Agents. Lloyd’s Brokers.
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)11Source: Lloyd’s as at 31/12/09; * some risks are placed directly with managing agent-owned service companies
Lloyd’s Market Structure
Members
Policyholders
Direct
Reinsurance
52 Managing
Agents
Management
84Syndicates
Underwriting
Members Agents
Brokers
Coverholders
Service Companies*
BUSINESS FLOW CAPITAL PROVISION
Corporate
Individual
Corporation of Lloyd’s
SEE: www.lloyds.com/directories
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)12
Lloyd’s Managing Agents
Source: Lloyd’s as at 01/01/09
The syndicates underwriting at Lloyd’s form one of the world’s largest commercial insurers, and a leading reinsurer.
The Lloyd’s market is home to 52 managing agents which currently manage 84 syndicates.
MembersPolicyholders
Direct
Reinsurance
48 Managing
Agents
Management
78Syndicates
Underwriting
Members Agents
BUSINESS FLOW CAPITAL PROVISION
Corporate
Individual
Corporation of Lloyd’s
MembersPolicyholders
Direct
Reinsurance
51 Managing
Agents
Management
80Syndicates
Underwriting
Members Agents
Corporate
Individual
Corporation of Lloyd’s
176Lloyd’s
Brokers
Service Companies
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)13
Sources of Lloyd’s Capital
Source: Lloyd’s, Annual Report, (March 2010), www.lloyds.com/Lloyds_Market/Financial_performance/Financial_reports/2009_Annual_Report.htm
MembersPolicyholders
Direct
Reinsurance
48 Managing
Agents
Management
78Syndicates
Underwriting
Members Agents
BUSINESS FLOW CAPITAL PROVISION
Corporate
Individual
Corporation of Lloyd’s
MembersPolicyholders
Direct
Reinsurance
51 Managing
Agents
Management
80Syndicates
Underwriting
Members Agents
Corporate
Individual
Corporation of Lloyd’s
176Lloyd’s
Brokers
Service Companies
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
By Type15%
38%
47%
UK Listed
Individual Members
International
Financial security gives confidence to capital providers and peace of mind to policyholders.
It is the members of Lloyd’s who provide the capital to support the syndicates’ underwriting.
Members are drawn from some of the world’s major insurance groups and companies listed on
the UK stock exchange as well as individuals and limited partnerships.
© Lloyd’sQUICK TOUR (About Lloyd's)14
Sources of Lloyd’s Capital
Source: Lloyd’s, Annual Report, (March 2010), www.lloyds.com/Lloyds_Market/Financial_performance/Financial_reports/2009_Annual_Report.htm
MembersPolicyholders
Direct
Reinsurance
48 Managing
Agents
Management
78Syndicates
Underwriting
Members Agents
BUSINESS FLOW CAPITAL PROVISION
Corporate
Individual
Corporation of Lloyd’s
MembersPolicyholders
Direct
Reinsurance
51 Managing
Agents
Management
80Syndicates
Underwriting
Members Agents
Corporate
Individual
Corporation of Lloyd’s
176Lloyd’s
Brokers
Service Companies
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
Bermudian Insurance Industry
UK Insurance Industry
Worldwide Insurance Industry
US Insurance Industry
Names (Limited Liability)
Names (Unlimited Liability)
40%
18%
15%
13%
9%5%
By Geography
© Lloyd’sQUICK TOUR (About Lloyd's)15
Lloyd’s Franchise Model
Syndicate business planningUnderwriting standards Monitoring / benchmarkingClaims, reinsurance and run-off management
Syndicate capitalCentral assets
Realistic Disaster ScenariosRisk management framework
Syndicates submit plans on an annual basis and performance against plans is reviewed / benchmarked on a quarterly basis
Lloyd’s has set capital requirements centrally using its own risk based capital model since 1995 (Individual Capital Assessment (ICAs)
Undertaking disaster planning process, to identify and monitor key aggregation and catastrophe risk exposures
MembersPolicyholders
Direct
Reinsurance
48 Managing
Agents
Management
78Syndicates
Underwriting
Members Agents
BUSINESS FLOW CAPITAL PROVISION
Corporate
Individual
Corporation of Lloyd’s
MembersPolicyholders
Direct
Reinsurance
51 Managing
Agents
Management
80Syndicates
Underwriting
Members Agents
Corporate
Individual
Corporation of Lloyd’s
Source: http://www.lloyds.com/Lloyds_Market/Performance_management_framework/
Establishment of Franchise Board and model in 2002 to improve market profitability and protect Lloyd’s central assets and address divergence in syndicate performance.
176Lloyd’s
Brokers
Service Companies
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)16
Lloyd’s Brokers MembersPolicyholders
Direct
Reinsurance
48 Managing
Agents
Management
78Syndicates
Underwriting
Members Agents
BUSINESS FLOW CAPITAL PROVISION
Corporate
Individual
Corporation of Lloyd’s
MembersPolicyholders
Direct
Reinsurance
51 Managing
Agents
Management
80Syndicates
Underwriting
Members Agents
Corporate
Individual
Corporation of Lloyd’s
The interaction between brokers and underwriters is the source of the market's reputation for innovation and creativity. Non-Lloyd's brokers can now deal directly with managing agents subject to meeting the same commercial and regulatory standards that apply to Lloyd's brokers.
…has been approved by an appropriate regulatory body;
2. PROFESSIONAL INDEMNITY …meets our enhanced PI requirements;
3. TOBA…has entered into a terms of business agreement with each managing agent with whom it intends doing business;
…has arrangements for protecting insurance/client monies;
…is able to handle and process the business in accordance with relevant London market standards and practices.
Source: http://www.lloyds.com/Lloyds_Market/Market_participants/Managing_Agents/Managing_Agents_dealing_with_non-Lloyds_brokers.htm
176Lloyd’s
Brokers
Service Companies
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)17
Geographic ProfileFrom Geographic split to profile…
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)18Based on: Hess, T., “The Opening up of International Insurance Markets: Trends and Consequences”, (2006)
Shifting Business and Insurance landscape
Business Environment increasing income / complexity & maturity of economy
Cu
lture / B
uyin
g B
ehavio
ur /
Market D
ynam
ics / Reg
ulatio
n
Rapid industrialisation
FDI/capital inflow
Focus on commercial lines
Young population
Vietnam
Motor/household insurance
Savings products
Increasing home/car ownership
Emergence of a middle-income
class
China
Reform of old (state-owned) companies
New start-ups
Brazil
Increasing role of services
Protection of start-ups
Growth of personal lines
Protection products
Turkey
Large conglomerates
Credit & Surety
Poland
FDI capital outflow
Increasing liability business
Wealth management
South Korea
Corporate (re)insurance
Ageing population
Singapore
Captives
US
XOL
Insurance Environment sophisticated products / buyers / complexity of risks
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)19
Lloyd’s Business Split – 2009
Source: Lloyd’s, Annual Report, (March 2010), www.lloyds.com/Lloyds_Market/Financial_performance/Financial_reports/2009_Annual_Report.htm
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
US & Canada
45%
UK
20% Europe
16%
Other Americas
6%
Central Asia & Asia Pacific
9%Rest of
the World
4%
© Lloyd’sQUICK TOUR (About Lloyd's)20
Gross Domestic Product* – 2000
Source: *Purchasing Power Parity based on: IMF, World Economic Outlook (April 2010); http://www.imf.org/external/pubs/ft/weo/2010/
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
Canada 888bn US 9.9 trillion
Mexico 1.0 trillionBrazil 1.2 trillionArgentina 338bn
UK 1.5 trillionFrance 1.5trillionGermany 2.1trillionItaly 1.3 trillionTurkey 512bnRussia 1.1 trillion
India 1.5 trillionSaudi Arabia 353bnSouth Africa 295bn
China 3.0 trillion Japan 3.2 trillion
Korea 775bnIndonesia 500bnAustralia 528bn
Size of bubble proportionate to level of Purchasing Power Parity in USD; benchmarked to US (2000) (IMF ESTIMATE)
© Lloyd’sQUICK TOUR (About Lloyd's)21
Gross Domestic Product* – 2010History Market Structure Geographic Profile Global Network Core Strengths CONTENT
Canada 1.3 trillionUS 14.7 trillion
Mexico 1.5 trillionBrazil 2.1 trillionArgentina 609bn
UK 2.1 trillionFrance 2.1 trillionGermany 2.8 trillionItaly 1.7 trillionTurkey 932bnRussia 2.2 trillion
India 3.8 trillionSaudi Arabia 618bnSouth Africa 521bn
China 9.7 trillion Japan 4.2 trillion
Korea 1.4 trillionIndonesia 1.0 trillionAustralia 882bn
Size of bubble proportionate to level of Purchasing Power Parity in USD; benchmarked to US (2010) (IMF FORECAST)
Source: *Purchasing Power Parity based on: IMF, World Economic Outlook (April 2010); http://www.imf.org/external/pubs/ft/weo/2010/
© Lloyd’sQUICK TOUR (About Lloyd's)22
Gross Domestic Product* – 2015History Market Structure Geographic Profile Global Network Core Strengths CONTENT
Canada 1.6 trillionUS 18.2 trillion
Mexico 2.1 trillionBrazil 2.8 trillionArgentina 771bn
UK 2.7 trillionFrance 2.6 trillionGermany 3.3 trillionItaly 2.0 trillionTurkey 1.2 trillionRussia 2.9 trillion
India 6.2 trillionSaudi Arabia 838bnSouth Africa 700bn
China 16.8 trillion Japan 5.1 trillion
Korea 1.9 trillionIndonesia 1.5 trillionAustralia 1.1 trillion
Size of bubble proportionate to level of Purchasing Power Parity in USD; benchmarked to US (2015) (IMF FORECAST)
Source: *Purchasing Power Parity based on: IMF, World Economic Outlook (April 2010); http://www.imf.org/external/pubs/ft/weo/2010/
© Lloyd’sQUICK TOUR (About Lloyd's)23
Top Sovereign Wealth Funds* – 2010 History Market Structure Geographic Profile Global Network Core Strengths CONTENT
US 52bn Norway 443bnRussia 90bnIreland 31bnFrance 28bn
UAE 662bnSaudi Arabia 432bnKuwait 203bnLibya 70bnQatar 65bn
China 787bn Singapore 370bnHong Kong 140bnAustralia 59bnKorea 27bnMalaysia 25bn
Size of coloured bubbles represent total disclosed SWF assets; benchmarked to China (2010) (SWF INSTITUTE ESTIMATE)
Source: *Estimate based on: Sovereign Wealth Fund Institute, (June 2010); figures are aggregated on funds, which were disclosed at www.swfinstitute.org/
© Lloyd’sQUICK TOUR (About Lloyd's)24
Direct Insurance Market* – 2008History Market Structure Geographic Profile Global Network Core Strengths CONTENT
Canada 57bnUS 662bn
Mexico 11bnBrazil 25bnArgentina 6bn
UK 107bnFrance 92bnGermany 132bnItaly 58bnTurkey 8bnRussia 38bn
India 7bnSaudi Arabia 3bnSouth Africa 8bn
China 45bn Japan 106bn
Korea 31bnIndonesia 2bnAustralia 28bn
Size of bubble proportionate to level of total direct market in USD; benchmarked to US (2008) (III ESTIMATE*)
Source: *Estimate based on III Fact Book; www.iii.org; for detailed statistics and clear market definitions, please refer to the local regulator & Regional Watch: www.lloyds.com/REGIONALWATCH
© Lloyd’sQUICK TOUR (About Lloyd's)25
Direct Insurance Market* – 2000 – 2008History Market Structure Geographic Profile Global Network Core Strengths CONTENT
Canada 57bnUS 662bn
Mexico 11bnBrazil 25bnArgentina 6bn
UK 107bnFrance 92bnGermany 132bnItaly 58bnTurkey 8bnRussia 38bn
India 7bnSaudi Arabia 3bnSouth Africa 8bn
China 45bn Japan 106bn
Korea 31bnIndonesia 2bnAustralia 28bn
Size of bubble proportionate to level of total direct market in USD; benchmarked to US (2008) (ESTIMATE*)
Source: *Estimate based on III Fact Book; www.iii.org; for detailed statistics and clear market definitions, please refer to the local regulator & Regional Watch: www.lloyds.com/REGIONALWATCH
> 200%
> 100% - 200%
< 100%
2000 - 2008 Premium Growth
© Lloyd’sQUICK TOUR (About Lloyd's)26
Global NetworkFrom structures to licences and offices…
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)27
US
Excess & Surplus
Licence Network
Reinsurance onlyLloyd's is specifically registered or licensed to write reinsurance business only.*
*See: www.lloyds.com/crystal for detailed access routes + exemptions
Reinsurance from outside the territoryTerritories where Lloyd’s is not registered or licensed but can transact cross-border reinsurance business.*
Insurance + Reinsurance52 territories where Lloyd’s is licensed to underwrite insurance and reinsurance business.*
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)28
Licence Network
1990s EU legislation allows Lloyd’s to carry on insurance in other EEA
member states on an establishment & services basis
1997 Lloyd’s Japan established
2000 Lloyd’s Asia established
2002 EU establishment licence Spain
2006 Lloyd’s becomes an onshore re-insurer in China
2008 ‘Admitted reinsurer’ status in Brazil and EU establishment
licences in Poland and Austria
2009 EU establishment licence in Portugal
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)29
Office Network
1
1
1
1
2
22
2
33
3 3
3
3
3
3
1 1
1
11
4
4
4
3
3
3
3
2
4Local underwriting with co-located Syndicates(or via a Lloyd’s regulated entity); Country Manager with Market Development Role
Europe
3 Country Manager with Market Development Role
2 Country Representative for regulatory requirements
1 Country Representative for minimum regulatory requirements
Type Market Development Scope Territories
Europe
Austria, Denmark, Norway, PortugalArgentina, Belize, Chile
Namibia, Zimbabwe
Cyprus, Greece, Israel, Malta
New Zealand
South Africa
Australia, Hong Kong (SAR)Benelux, France, Germany, Ireland, Italy, Poland, Spain, Sweden, Switzerland
Brazil
ChinaJapanSingapore
North America
www.lloyds.com/AMERICA
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)30
Core strengthsFrom Performance to ratings…
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)31
Core Strengths: Lloyd’s Outperforms Lloyd’s outperforms the market during below average catastrophe years
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
INDUSTRY CAT LOSSES
USD BN INDEXED TO 2009
LLOYD’S MAJOR LOSSES
USD BN INDEXED TO 2009
Source: Industry - Swiss Re, Sigma No 1/2010; Lloyd’s – Net ultimate claims for major losses per syndicate QMRs, Lloyd’s pro forma financial statements, 31 Dec 2009
0
20
40
60
80
100
120
140
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Ave
rage
0
1
2
3
4
5
6
7
Industry 1994 - 2008 Lloyd'sIndustry 2009
© Lloyd’sQUICK TOUR (About Lloyd's)32
29.3%
£3,846m
£2,007m
84.0%
£16,366m
2007
£1,899mProfit before tax
£957mInvestment return
13.7%Return on capital (pre-tax)
£17,985mGross written premiums
91.3%Combined ratio
2008
Core Strengths: Strong results
Source: Lloyd’s pro forma financial statements, 2009 Interim Results
31.4%
£3,662m
£1,661m
83.1%
£16,414m
2006
(0.9%)
(£103m)
£1,436m
111.8%
£14,982m
2005
£3,868m
£1,769m
23.9%
£21,973m
86.1%
2009
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)33
Strong Results: Currency Movements
Source: Lloyd’s pro forma financial statements, 31 Dec 2009
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
GWP
GBP m 8% 22% 13%
Note: Attribution to foreign exchange movements and increase in local currency stated on a compound basis
21,973
17,985
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
2008 Increase in localcurrency
Foreign exchangemovements
2009
© Lloyd’sQUICK TOUR (About Lloyd's)34
Core strengths: Good performance 2009 annual results of a profit before tax of GBP 3,868m
Lloyd’s continues to compare well against its peers
Sources: Sources i) Insurance Information Institute (estimate-2009), ii) Reinsurance Association of America, iii) Company data (8 European companies: 17 Bermudian companies)
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
9792
102101
91
100
86
94
99
84
50
70
90
110
130
Lloyd's US P/C Industry (i) US Reinsurers (ii) European(Re)Insurers (iii)
Bermudian(Re)Insurers (iii)
2005 2006 2007 2008 2009
COMBINED RATIO
© Lloyd’sQUICK TOUR (About Lloyd's)35
Core Strengths: Strength and Stability
Source: Society of Lloyd’s financial statements, Annual Report, (March 2010)
Chain of security provides excellent security and capital efficiency
1st Link
2nd
Link
3rd
Link
Syndicate Level Assets
GBP 37,400m
Members’ Funds at Lloyd’s
GBP 13,159m
Several
Assets
Mutual
Assets
Central Fund GBP 983m Corporation Assets GBP 143m
Subordinated Debt / Securities GBP 958m
Calla
ble
Layer
GB
P 683m
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)36
Core Strengths: Large Solvency surplus
Source: Lloyd’s pro forma financial statements, 31 Dec 2009
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
Note: * Solvency surplus net of solvency deficits
GBP m GBP m
BALANCE SHEET
19,121
10,992
13,333
14,46115,264
2,752
2,4752,297
1,368
1,801
5,000
10,000
15,000
20,000
2005 2006 2007 2008 2009
0
500
1,000
1,500
2,000
2,500
3,000
Capital, Reserves, Subordinated loan notes & securities Solvency surplus*
© Lloyd’sQUICK TOUR (About Lloyd's)37
Core strengths: Well Positioned 3
Source: Society of Lloyd’s financial statements, (2008); based on Lloyd’s, Annual Report, (April 2009)
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
Our focus:
1. Performance Management
2. Solvency II
3. The Exchange
4. Claims Transformation
5. Access to business
Fitch RatingsA+ (strong), stable outlook
Standard & Poor’sA+ (strong), stable outlook A+
AA.M. BestA (excellent), stable outlook
© Lloyd’sQUICK TOUR (About Lloyd's)38
Appendix
History Market Structure Geographic Profile Global Network Core Strengths CONTENT
© Lloyd’sQUICK TOUR (About Lloyd's)39
Data LimitationsHistory Market Structure Geographic Profile Global Network Core Strengths CONTENT
The detailed country-level Lloyd’s data used in this document is based on calendar year signed gross premiums sourced from Xchanging. This differs from the Lloyd’s data published in the Annual Report. The accounting-level Lloyd’s data published in the Annual Report is based on calendar year written gross premiums sourced directly from Syndicates. Differences are therefore explained by (1) the timing differences between written and signed gross premiums and (2) inconsistent use of rates of exchange between Syndicates and Xchanging.
Please note the information contained in this document is based upon data collected from Xchanging and may be incomplete for some classes of business; for instance a substantial figure, which is missing from the REG 258 data set is comprised of UK Motor, which is not processed by Xchanging.
Lloyd’s figures are based on gross signed premiums based on figures processed by Xchanging by processing year and country of origin.
Gross Premiums: Original and additional inward premiums, plus any amount in respect of administration fees or policy expenses remitted with a premium but before the deduction of outward reinsurance premiums.
Country of Origin: Denotes the country from where demand for the insurance / reinsurance emanates; i.e. the coverholder or policyholder, irrespective of the country to which the risk is classified for regulatory reporting purposes.
Processing Year: Relates to the calendar year in which the premium, additional or return premium is processed by Xchanging, irrespective of the actual underwriting year of account of the risks (which is determined by the inception date of each risk).
Example: A policy holder in the UK insuring a holiday home in France would be classified as a UK risk by “Country Of Origin”, but “French” for regulatory reporting purposes. Similarly a risk incepting on 1st December 2007 would be classified at 2007 “Underwriting Year of Account” but may not be processed by Xchanging until 2008 and so be allocated to the 2008 “processing year”.
Disclaimer“This document is intended for general information purposes only. Whilst all care has been taken to ensure the accuracy of the information Lloyd's does not accept any responsibility for any errors or omissions. Lloyd's does not accept any responsibility or liability for any loss to any person acting or refraining from action as a result of, but not limited to, any statement, fact, figure, expression of opinion or belief contained in this document".
© Lloyd’sQUICK TOUR (About Lloyd's)40