Lloyds Underwriters

Hardy and Chaucer Results

So far a good results season for the sector: benign weather and better rating envoronment helped, but best performance came from skilled underwriting and good claims management

Hardy: good performance and track record throughout the cycle, so undervalued at 5.1x PFER

Chaucer: a recent change of the management team but too large a discount at only 4.7x PFER

Storm Damage from Wall St

improving outlook for catastrophe and reinsurance market

Lloyd's well placed to benefit

some leading insurers now likely to try and increase capacity for 2009

Interesting Times

The beginning of September and the second hurricane of the year hits a major US city (or two in this case).

Hurricane Alert

Hurricane Gustav is expected to hit or pass close by New Orleans

Reinsurance rates should rise as a result of the 2nd major hurricane in 3 years

Overall future profit for the majority of Lloyd’s insurers should benefit from higher reinsurance rates

Record profits all round

Sector still cheap

Keep focus on quality players