These are premium years for insurers

Alex Foster, manager of the Hiscox Insurance Fund tells MoneyWeek where he'd put his money now.

Alex Foster, manager of the Hiscox Insurance Fund tells MoneyWeek where he'd put his money now.

There was an uptick in property/casualty underwriting just before September 11th, and it has been on a strong upward trend since. However, results just out from the Lloyd's insurers are the first to fully reflect this: most firms delivered 2003 earnings well ahead of expectations. This was down to the fact that 2002 and 2003 were excellent years for underwriters given increased rates, tighter terms and conditions, and the low level of catastrophe losses'. And the good times are not over yet: I think this year should be at least as strong. Underwriting discipline has stayed good and, although some rates have eased, in certain classes they remain at high levels. The Lloyd's firms should therefore see strong double-digit earnings growth until 2006.

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