LONDON: The 330-year old specialist insurance market Lloyd's of London reported a first-half pre-tax profit of 2.3 billion pounds ($2.87 billion) on Thursday, up nearly fourfold on investment gains and a cutback in underperforming business.
Lloyd's, which covers commercial risks from oil risks to footballers' legs, suffered steep losses in 2017 and 2018 due to natural catastrophes such as hurricanes, typhoons and wildfires.
Lloyd's last year told its 99 member syndicates to ditch the worst performing 10% of their businesses.
"It is encouraging that the Lloyd's market is showing increased discipline in 2019," Chief Executive John Neal said in a statement.
"We need to make some brave choices on how to meet the expectations of our customers and all our stakeholders in the future."
The market has proposed its members move to electronic exchanges next year, as it responds to competition from cheaper rivals.
Further details of the strategic changes will be released on Sept 30.
Net investment income rose to 2.3 billion pounds from 0.2 billion a year earlier, helped by strong equity returns.
Gross written premiums rose 1.7% to 19.7 billion pounds but the company's combined ratio, a measure of underwriting performance in which a level below 100% indicates a profit, weakened to 98.8% from 95.5%.
The results compare with a profit of 0.6 billion pounds a year ago.
Premium rates rose by an average of 3.9%, Lloyd's said.
Lloyd's in May asked the Banking Standards Board to conduct a survey of the insurance market's 45,000 participants on issues such as honesty and respect to help to improve its working environment, following allegations of sexual harassment at member firms.
The survey will be published on Sept 24, Neal said on Thursday.
Lloyd’s of London profits quadruple on investment gains
Lloyd’s of London profits quadruple on investment gains
- Specialist insurer reports first-half pre-tax profit of $2.87 billion
EU investments in Saudi Arabia to prosper over next 5 years, says ambassador
RIYADH: European investments in Saudi Arabia are set to see notable growth over the next five years, encompassing green energy, metals, critical raw materials, advanced industry, and the digital sector.
Christophe Farnaud, the EU Ambassador to Saudi Arabia, confirmed to Al-Eqtisadiah that an anticipated memorandum of understanding with the Kingdom in the energy field will provide an organized framework for cooperation in energy transition and sustainability, boosting investor confidence in the long-term partnership between the two sides.
The volume of trade in goods and services between Saudi Arabia and the EU amounts to €90 billion ($105.6 billion), according to the latest data from 2024, making the EU the Kingdom’s second-largest trading partner, according to Farnaud.
Currently, 2,500 European companies operate within the Saudi market, highlighting the depth of economic relations between the two sides.
A qualitative development in relations
Farnaud affirmed that Saudi-European relations are witnessing qualitative development, especially since the EU’s adoption in 2022 of its strategy towards Gulf Cooperation Council countries, which is based on enhancing political, security, and economic cooperation, in addition to cultural and humanitarian exchange.
He noted that Saudi Arabia’s Vision 2030 constitutes an attractive framework for strengthening this partnership.
The ambassador also pointed out that the launch of the European Chamber of Commerce in the Kingdom of Saudi Arabia during 2024 represented an important step to support cooperation between European and Saudi companies and enhance mutual investments, reflecting a positive outlook for the future of economic relations.
Economic relations are no longer limited to traditional trade exchange but have transformed into a multi-sector partnership, including investment, services, manufacturing, energy, and sustainability, according to Farnaud.
Relaunching Free Trade Agreement negotiations
The ambassador revealed ongoing discussions to relaunch negotiations for a Free Trade Agreement between the EU and GCC countries, which have been stalled since 2008, aiming to reach a modern agreement covering investment, services, intellectual property protection, technical standards, and government procurement.
He also indicated readiness to launch negotiations for a bilateral strategic partnership agreement with Saudi Arabia, including industrial cooperation, critical raw materials, energy, and sustainability, alongside working to sign a memorandum of understanding in the energy field in the coming period.
The EU, according to Farnaud, is the largest foreign investor in Saudi Arabia, holding 29 percent of the total foreign direct investment stock, which amounted to 30.7 billion euros in 2023.
Investments are concentrated in the transport, energy, industry, tourism, education, and training sectors, with major European companies participating in strategic projects like the Riyadh Metro.
Sectors of common priority
The ambassador explained that the energy sector, especially renewable energy and green hydrogen, represents a common priority, amidst the global shift towards sustainability, in addition to significant opportunities in the high-tech manufacturing sector, industrial localization, and knowledge transfer.
He pointed to the growing interest of European investors in Saudi Arabia’s tourism sector, driven by Vision 2030’s targets to raise tourism’s contribution to the gross domestic product to 10 percent.
Wide opportunities stand out in areas of hospitality, tourist destination management, cultural tourism, transport, and sustainability, especially in major projects like NEOM, AlUla, the Red Sea Project, and Diriyah.
Farnaud cited existing partnerships with leading European companies such as Accor and Kempinski, in addition to French cooperation in developing AlUla as a global heritage and tourist site.
