Net income fell for the listed Integrated Lloyd’s Vehicles (ILVs) from GBP1.2 billion in 2007 to GBP300 million for full-year 2008. Unrealized investment losses were responsible for much of this situation. Nonetheless, the ILVs were able to maintain a positive aggregate return on equity (ROE) of 4.2 percent.
Underwriting profits fell 66 percent in aggregate year-over-year, with four of the ILVs sustaining underwriting losses last year. Total net profit for this group was GBP339 million.
The common theme for 2008 results extended to Lloyd’s … unrealized investment losses caused most of the earnings damage. The ILVs experienced an aggregate unrealized investment loss of GBP716 million last year - unlike its GBP46 million gain in 2007. Realized investment losses were GBP121 million, compared to a gain of GBP31 million in 2007.
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