Lloyd’s members predict profit by 2002

The body representing Lloyd’s Names says the market should see a return to profitability as soon as next year, despite several years of dismal performance. In a recently released report, the Association of Lloyd’s Members, which represents most of the individual investors in the insurance market, writes that the catastrophes that have plagued Lloyd’s in the past few years should be overcome by next year, mainly as a result of moves to increase rates.The Names expect to start seeing a profit from 2001 onward, and predicts the market as a whole will earn a $673.8 million profit in 2002. The association also predicts that the upturn will last longer than in previous cycles.The report also notes that Names have outperformed large international insurers in terms of a return on their investment, although 1998 results show even Names lost 7% of capacity.