Business

Lloyd's of London in profit despite Superstorm Sandy

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Media captionLloyd's chief executive Richard Ward: "2012 was more reflective of what we have experienced over the past 10 years"

Insurance market Lloyd's of London has returned to profit, despite paying one of the biggest claims in its history.

Superstorm Sandy, which hit the Caribbean and North America in October 2012, resulted in a £1.4bn payout.

But Lloyd's still made pre-tax profits of £2.77bn ($4.19bn; 3.26bn euros), reversing a loss of £516m for 2011, the market's costliest year on record.

Claims costs fell from £12.9bn to £10.1bn, while gross premiums reached a record high of £25bn, Lloyd's said.

Lloyd's chief executive Richard Ward said: "The Lloyd's market has posted a strong result, despite incurring £10bn of total net claims in 2012, including Superstorm Sandy, one of the costliest natural catastrophes in history."

He said the economic environment remained "challenging", but with £59.3bn of resources at its disposal, the business was "capitalised at record levels".

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