Source - RNS
RNS Number : 9724M
Lloyds Of London
19 October 2016

19 October 2016

Lloyd's publishes Interim Management Statement Q3 2016

The Society of Lloyd’s is today publishing its Interim Management Statement for the nine month period to 30 September 2016. This statement describes the unaudited consolidated financial position of the Society itself, its subsidiaries and the Central Fund and does not include results of the syndicates operating in the Lloyd’s Market.


  • Central assets for solvency increased to £3,504m (December 2015: £3,338m) on a Solvency II basis.
  • Although market conditions remain challenging, Lloyd’s remains in robust financial shape.
  • During the period there have been no events that have resulted in any material changes to our expectations for the full year.

Operating Review


Lloyd’s long-term strategy – Vision 2025 – is to be the global centre for specialist insurance and reinsurance. Lloyd’s Strategy 2016 – 2018 outlines the plans of the market and Corporation over the next three years in the delivery of this vision.


Financial Review

Excess of central assets over members’ losses


Management’s estimate of the excess of central assets over Members’ losses has increased during the period to £3,493m, comprising:



30 Sep 


31 Dec 





Society net assets



Subordinated liabilities



Central assets



Callable layer



Other solvency adjustments



Central assets for solvency purposes



Members’ losses       



Excess of central assets over Members’ losses






Financial markets were relatively stable over the quarter, supported by further central bank measures in the aftermath of the EU referendum. Growth assets produced solid returns with emerging equity investments performing particularly well. Bond markets saw a further fall in yields leading to mark to market gains and a healthy level of return for the investment grade asset class.

Overall, the Society’s investments returned £239m, or 7.9%, during the period (2015: losses of £(6)m, (0.2)%). This amount includes foreign exchange gains arising from Society currency exposure to US dollars which contributed approximately £90m. 




For further information, please contact:


Media Relations:


Natasha McKibbin or Stewart Todd

Tel: +44 (0)20 7327 6745 Email: [email protected]

Tel: +44 (0)20 7327 6272 Email: [email protected]   


Investor Relations:


Nicola Hartley or Michelle Cunningham

Tel: +44 (0)20 7327 5757 Email:

Tel: +44 (0)20 7327 5434 Email: [email protected]


Notes to Editors

1. A copy of Lloyd’s 2015 Annual Report can be accessed at

2. Central assets include the assets of the Central Fund and the other assets of the Corporation. In aggregate, the value of Lloyd's central assets, excluding the callable layer and the liability in respect of the subordinated debt and securities, amounted to £2,751m at 30 September 2016. The Society financial statements are prepared in accordance with IFRS.

3. Callable layer:  Central Fund assets may be supplemented by a ‘callable layer’ of up to 3% of members’ overall premium limits in any one calendar year. These funds would be drawn from premium trust funds.

4. This press release includes forward-looking statements. These statements are based on currently

available information and consistent accounting policies as applied at 31 December 2015. They reflect

Lloyd’s current expectations, projections and forecasts about future events and financial performance. All

forward-looking statements address matters that involve risks, uncertainties and assumptions. Based on a

number of factors, actual results could vary materially from those anticipated by the forward-looking

statements. These factors include, but are not limited to, the following:

• Rates and terms and conditions of policies may vary from those anticipated.

• Actual claims paid and the timing of such payments may vary from estimated claims and estimated timings of payments, taking into account the preliminary nature of such estimates.

• Claims and loss activity may be greater or more severe than anticipated, including as a result of natural or man-made catastrophic events.

• Competition affecting the basis of pricing, capacity, coverage terms or other factors may be greater than anticipated.

• Reinsurance placed with third parties may not be fully recoverable, or may not be paid on a timely basis, or such reinsurance from creditworthy reinsurers may not be available or may not be available on commercially attractive terms.

• Developments in the financial and capital markets may adversely affect investments of capital and premiums, or the availability of equity capital or debt.

• Changes in legal, regulatory, tax or accounting environments in relevant countries may adversely affect

(i) Lloyd’s ability to offer its products or attract capital, (ii) claims experience, (iii) financial return, or

(iv) competitiveness.

• Economic contraction or other changes in general economic conditions could adversely affect (i) the market for insurance generally or for certain products offered by Lloyd’s, or (ii) other factors relevant to Lloyd’s performance.

• The foregoing list of factors is not comprehensive, and should be read in conjunction with other cautionary statements that are included herein or elsewhere. Lloyd’s undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.


5. Foreign exchange rates may materially fluctuate from the rates prevailing at 30 September 2016

(£1 = US$1.30, £1 = €1.16).


This information is provided by RNS
The company news service from the London Stock Exchange