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Lloyd’s of London swings to 2022 pre-tax loss
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FRANKFURT (Reuters) – Lloyd’s of London swung to a pre-tax loss in 2022 and took writedowns on its fixed-income
FRANKFURT (Reuters) – Lloyd’s of London swung to a pre-tax loss in 2022 and took writedowns on its fixed-income investments, it said on Thursday.
The pre-tax loss was 800 million pounds ($982.56 million), compared with a profit of 2.3 billion pounds a year earlier.
Rising interest rates have hit investments at many financial firms, and it posted a net investment loss of 3.1 billion pounds, compared with a 900 million pound profit in 2021.
However, Lloyd’s underwriting profit jumped 53% to 2.6 billion pounds. Higher premium rates have helped insurers’ underwriting profits in recent years.
John Neal, CEO of Lloyd’s, forecast 2023 premiums of 56 billion pounds, up from 46.7 billion in 2022, according to a statement.
($1 = 0.8142 pounds)
(Reporting by Tom Sims; Editing by Sandra Maler)
Frequently Asked Questions about Lloyd’s of London swings to 2022 pre-tax loss
1What is a pre-tax loss?
A pre-tax loss occurs when a company's expenses exceed its revenues before tax deductions are applied, indicating a negative financial performance for that period.
2What is underwriting profit?
Underwriting profit refers to the profit made by an insurance company from its underwriting activities, calculated as premiums received minus claims paid and expenses.
3What are fixed-income investments?
Fixed-income investments are types of investment that provide returns in the form of regular, fixed payments and the eventual return of principal at maturity, such as bonds.
4What are premium rates?
Premium rates are the amounts charged by insurers for coverage, which can vary based on the risk associated with the insured entity or individual.
5What is a net investment loss?
A net investment loss occurs when the total losses from investments exceed the total gains, negatively impacting a company's financial results.
