Lloyds Insurance Announces Billions in Profit for 2010

April 4 - Lloyds, the global insurance giant, which also does business in South Africa, announced a profit of over £2 billion for 2010.

Profit before tax was £2,195 million, and showed a record level of central assets at £2,377 million.

Lloyds also showed that the return on investments was £1,258 million in 2010.

These numbers were recorded despite the massive claims from natural disasters that hit the world last year.

"In 2010, Lloyd's made a profit of $3.4 billion despite facing significant claims from the tragic earthquakes in Chile and New Zealand, the floods in Australia and the loss of the Deepwater Horizon oil rig in the Gulf of Mexico," said the chairman of the group, Lord Levene.

"The catastrophes of 2010 and 2011 have shown the crucial role insurance plays in helping communities rebuild after a crisis."

Levene said that the industry has to keep in mind that insurance is part of a wider financial services industry that is essential to the UK's and the world's economic recovery.

"We look at the government to protect the competitiveness of our industry and its contribution to both society and the economy," he said.

The CE of Lloyds, Richard Ward said that 2010 was a year that had a slightly higher than average number of natural catastrophes, adding that 2011 has been "an extraordinary year of tragic natural disasters."

He added that these are challenging times for insurers around the world and investment returns are down. However, Lloyds is in an excellent position to take full advantage of future opportunities by expanding into new economies.