2006
1 1 2. 3. 4. 4. 5. 6. 7 2 8. 9. 5 9. 9. 13. 15. 15. 16 3 20. 21. 21. 22. 23. 23. 23. 24 The Adam Room
17 1997 111 199 240 1 3 2006 1
. 3. 4. 4 1. 4 2. 4. 5 1. 5 2. 5 3. 5. 6 1. 6 2. 6 3. 6 1 6 2 6 3 6 4. 6. 7 1. 7 2. 7 3. 7 4. 7 5. 7 2
. 1996 8 7 105 9 100% 1997 1 4 2 5 6 2006 3
.. 1. 1,000 100% 2. 3 Participation Agreement 4
. 1. 2006 7 1 Andrew F. Beazley CEO, Beazley Furlonge Ltd. James Sardeson Julian James Director, Lloyd's World Wide Markets David Foreman plc Underwriter, Wellington Underwriting plc Robert Wyatt 2001 Amlin Syndicate 2001, Global Property Underwriter Elizabeth Rogula 2. Corporation of Lloyd's Legal CommitteeRemuneration Committee 3. 2006 9 1 Review of Financial Statements 2006 5
. 1. 2. 17 9 15 17 12 7 3. 1 2 2003 2004 2005 16 23 24 3 4. 6
. 1. 2. 2 3. 4. 5. 2006 7
. 9. 5 9. 9 1. 9 2. 10 3. 10 4. 10 5. 10 6. 11 7. 11 8. 11 9. 11 10. 5 12 11. 12 12. 12. 13 1. 13 2. 13 3. 13 4. 13 5. 14. 15. 15. 16 1. 16 2. 17 3. 18 4. 18 1 18 2 19 3 19 5. 19 6. 19 7. 19 8. 19 9. 19 8
. 2005 17 2005 4 1 2006 3 31 0.5 11.4 7.3 4.4 11.8 0.4 0.1 5.5 6.2 0.6 0.1 1.2 0.2 91.6 89.2 0.4 3.4 0.6 2.3 0.9. 5,% 2001 2002 2003 2004 2005 1,274 1,186 1,280 1,209 1,168 18 1,853 713 48 19 94 1,923 780 21 94 412 688 581 895 736 1,942 2,639 2,175 2,453 2,242 655 335 408 303 348 - - 201 201 201 641.8 316.0 543.7 823.3 1432.2 11 10 9 10 11 1,145 866 691 556 625 1. 2.. 1.,% 2003 2004 2005 107 46.1 344 99.5 115 7.3 632 83.6 85 26.3 651 3.0 117 35.5 63 61.8 96 18.5 44 30.3 160 67.4 103 133.7 7 41.5 - - 11 51.4 - - 8 19.9 - - 0-0 - - 100.0-100.0 - - - - 458 0.2 775 11.0 333 27.4 593 23.4 370 11.1 637 7.3 691 20.1 1,182 12.7 556 19.6 1,270 7.4 625 12.4 1,391 9.6 2006 9
2.,% 2003 2004 2005 80 67.5 317 43.3 58 27.9 574 81.2 28 51.7 593 3.3 155 34.6 101 2.2 134 13.8 82 18.7 211 57.8 154 87.3 7 36.0 - - 11 51.4 - - 8 19.9 - - - - - - - - - - - - - - 37 10.1 353 26.2 37 0.0 297 15.8 20 44.4 287 3.3 281 32.7 772 28.5 240 14.3 954 23.6 269 11.9 1,036 8.5 3. 2003 2004 2005 0 13 13 30 7 10 2 732-110 0 34-4 - 0-0 - 5-2 - 0 23 38 0 116 0 4 26 700 15 38 8 39 4. 2003 2004 2005 109 1 12 1 10 0 1,270 735 67 18 100 14 - - - - - - 4 4 0 0 1 1 35 14 31 9 14 0 1,421 756 111 30 124 16 5.,% 2003 2004 2005 108 27.4 - - 10 90.1 - - 10 0.5 1-709 1,524.7 174 2,556.0 62 91.2 13 92.1 115 84.9 29 117.7 - - - - - - - - - - - - - - - - 0 - - - - - - - 21 528.9 0-21 0.2 0 89.2 12 41.5 0 4,796.2 839 533.2 174 2,556.4 94 88.7 13 92.1 138 47.0 31 127.2 10
6. 2001 2002 2003 2004 2005 1 84 95 131 127 126 7. % 2005 11.8 107.0 118.8 62.3 77.2 139.4-91.2 91.2 - - - 3.9 90.3 94.2 19.9 89.2 109.2 1. 2. 3. 8. % 2005 0.5 15.6 16.0 23.2 48.5 71.7 1.4 91.8 90.4 - - - 1.3 62.2 63.5 4.4 38.2 42.7 1. 2. 3. 4. 5. 6. 9. % 2004 2005 98.2 98.2 1.8 1.8 2006 11
10. 5 5 % 2 91.9 1,000 11. A BBB BB 100% - - 100% 1,000 12. 2003 2004 2005 1 - - - 2 174 13 31 3 174 13 31 4 1 2 3 - - - 12
. 1. 2. 2003 2004 2005 2,155 2,440 2,181 2,175 2,453 2,242 2003 1,953 2004 1,379 2005 379 3.,% 2003 2004 2005 0 0.98 2 1.38 2 1.39 - - - - - - - - - - - - - 2 2 5 10 4.,% 2003 2004 2005 0 0.01 0 0.01 0 0.03 - - - - - - - - - - - - - - - - - - 0 0.98 2 1.38 2 1.39 - - - - - - - - - - - - 0 0.03 3 0.13 3 0.16 0 0 0 0 3 3 2006 13
5. 65 2 1 6 2003 2004 2005 201 2 201 2 201 5 201 2 201 2 201 5 14
,% 2004 2005 2005 3 31 2006 3 31 A 1,172 1,038 200 200 77 101 895 736 B 284 144 275 135 16 34 0 11 8 16 7 6 0 0 8 5 C AB x 50% = C 823.3 1,432.2 86 87 8 50 1. 2. B A C *1 *2 *3 *4 *5 *1 *2 *3 *4 *1 *3 *5 *5 3. %. 2006 15
. 1. 2004 2005 2005 3 31 2006 3 31 2004 2005 2005 3 31 2006 3 31 859 1,600 201 201 1,393 440-35 10 16 0-1 6 1,379 379 0 0 0 0 1 1 0 0 - - 598 582 294 233 303 348 959 923 - - - 27 575 525 6 1 23 22 201 201 125 139 40 5 - - 1,558 1,505 2,239 1,683 1,344 946 1,344 946 21 94 895 736 2,453 2,242 2,453 2,242 2005 1. 2. 3. 4. 5. + 250 17 233 0 233 6. + 744 497 247 101 348 7. 2005 2004 3 2002 3 2005 8. 9. 16
2. 2004 2005 2004 4 1 2005 3 31 2005 4 1 2006 3 31 1,209 1,168 1,198 1,147 556 625 0 0 293 294 349 226 - - 10 21 3 3 7 17 0 0 1,160 1,188 740 738 111 124 89 109 294 233 244 271 0 - - - - - 420 448 - - - - 48 19 - - 48 19 70 75 21 94 3,233 1,344 1,911 492 1,344 946 2005 1. 1,661 1,036 625 2. 193 84 109 3. 155 31 124 4. 0 2 0 3 5. 6. 7. 8. 329 35 294 0 294 250 17 233 0 233 763 537 226 0 226 744 497 247 24 271 9. 10. 3 2002 3 492 11. 2006 17
3. 2004 2005 48 19 1 61 104 44 3 3 7 17 73 83 9 140 3 3 70 75 58 212 - - - - + 57 212 - - 405 389 453 536 383 83 335 63 7 17 285 258 1,953 2,238 2,238 1,980 1. 2. 3. 4. 2003 2004 2005 112 88 83 99 156 127 1 2 2 6 3 0 482 346 367 701 598 582 1 IBNR 2003 2004 2005 2003 2004 2005 2003 2004 2005 13 6 0 - - - 13 6 0 38 107 59 - - - 38 107 59 0 - - 0 0 0 0 0 0 2 1-3 1 0 5 2 0 220 162 158 14 14 13 234 176 172 274 278 218 18 16 15 293 294 233 18
2 2003 2004 2005 2003 2004 2005 2003 2004 2005 87 66 62 11 16 20 98 82 83 43 28 41 17 20 26 61 49 68-0 0 0 0 1 0 1 2 - - - 0 - - 0-0 220 132 142 27 37 54 247 170 195 350 227 247 58 76 101 408 303 348 3 5. 2004 2005 2005 2005 - - - - 6. 1% 1% 6 7. 2003 2004 2005 - - - - - - 3 - - - - - - - - - 40 97 96 1 3 4 3 3 3 3 8. 9. 2006 19
. 21. 21. 22 1. 22 2. 22 1 22 2 22. Chain of Security 23 1. Premiums Trust Funds 23 2. Funds at Lloyd's 23 3. Central Fund 23. 23. 23. 24 1. GAAP 24 2. GAAP 25 20
. The Society of Lloyd's Lloyd's Act, 1982 One Lime Street London EC3M 7HA 2005 149 7,900 2005 1 1 2005 12 31 3 520 203.74 2005 117 7,000 2 3,980 2006 148 3 150 Chairman of Lloyd's Lord Peter Levene of Portsoken. Lloyd's Act, 1982 Lloyd's Byelaw 1998 2000 Financial Services Authority 2006 21
. 1. 17 Excess of Loss Reinsurance 2. 1 Underwriting Members Name Syndicate 1994 2006 148 3 150 90.3 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2002 2003 2004 2005 2006 2 1,000 Spread Vehicle 1994 Spread Vehicle Corporate Syndicate 2002 2003 2004 2005 2006 86 71 66 62 64 22
. Chain of Security Chain of Security 1. Premiums Trust Funds 291 900 5 9,310 2. Funds at Lloyd's 102 600 2 790 40% 3. Central Fund 12 6,600 2,580 1= 203.74 2005 12 31. Solvency Margin Financial Services Authority EU 2005 12 31 442.7% Lloyd's Solvency Margin Global Basis 2004 2005 2004 12 31 2005 12 31 1. Amount of the required minimum margin 2,256 2,272 2. Total assets available to meet the required minimum margin 10,070 10,058 3 2 1 Solvency Margin Ratio 446.4% 442.7%. S&P 2005 12 AM Best 2006 7 Fitch 2005 12 A Strong A Excellent A Strong 2006 23
. 1. GAAP 2005 2004 2003 12 31 2004 12 31 as at 31 December 2005 as at 31 December 2004 STG. STG. Stg. 1= 203.74 Stg. 1= 199.81 Investments Financial investments 25,523 5,200,056 22,068 4,409,407 Deposits with ceding undertakings 14 2,852 15 2,997 Reinsurers' share of technical provisions Claims outstanding 14,450 2,944,043 9,678 1,933,761 Unearned premiums 696 141,803 872 174,234 15,146 3,085,846 10,550 2,107,996 Debtors Debtors arising out of direct operations 3,853 785,010 3,444 688,146 Debtors arising out of reinsurance operations 3,629 739,372 3,411 681,552 Other debtors 685 139,562 687 137,269 8,167 1,663,945 7,542 1,506,967 Other assets Tangible assets 17 3,464 16 3,197 Cash at bank and in hand 8,045 1,639,088 8,105 1,619,460 Overseas deposits 1,444 294,201 1,239 247,565 Other 10 2,037 12 2,398 9,516 1,938,790 9,372 1,872,619 Prepayments and accrued income Accrued interest and rent 93 18,948 63 12,588 Deferred acquisition costs 1,503 306,221 1,444 288,526 Other prepayments and accrued income 91 18,540 111 22,179 1,687 343,709 1,618 323,293 Total assets 60,053 12,235,198 51,165 10,223,279 Capital, reserves and subordinated loan notes Members' funds at Lloyd's 10,206 2,079,370 9,622 1,922,572 Members' balances 408 83,126 1,426 284,929 Central Reserves 693 141,192 615 122,883 Capital and reserves 10,491 2,137,436 11,663 2,330,384 Subordinated loan notes 501 102,074 506 101,104 10,992 2,239,510 12,169 2,431,488 Technical provisions Provision for unearned premiums 6,829 1,391,340 6,780 1,354,712 Claims outstanding 37,719 7,684,869 28,849 5,764,319 44,548 9,076,210 35,629 7,119,030 Deposits received from reinsurers 142 28,931 37 7,393 Creditors Creditors arising out of direct insurance operations 884 180,106 458 91,513 Creditors arising out of reinsurance operations 2,228 453,933 1,894 378,440 Other creditors including taxation 1,113 226,763 758 151,456 4,225 860,802 3,110 621,409 Accruals and deferred income 146 29,746 220 43,958 Total liabilities 60,053 12,235,198 51,165 10,223,279 24
2. GAAP 2005 2004 2005 1 1 2005 12 31 2004 1 1 2004 12 31 for the year ended 31 December 2005 for the year ended 31 December 2004 STG. m n STG. m n Stg. 1= 203.74 Stg. 1= 199.81 Technical account Gross premiums written -continuing operations 14,979.0 3,051,821.5 14,268.0 2,850,889.1 -discontinued operations 3.0 611.2 346.0 69,134.3 14,982.0 3,052,432.7 14,614.0 2,920,023.3 Outward reinsurance premiums 3,212.0 654,412.9 2,880.0 575,452.8 Premiums written, net of reinsurance 11,770.0 2,398,019.8 11,734.0 2,344,570.5 Change in the gross provision for unearned premiums 230.0 46,860.2 380.0 75,927.8 Change in provision for unearned premiums, reinsurers' share 215.0 43,804.1 317.0 63,339.8 15.0 3,056.1 63.0 12,588.0 Earned premiums, net of reinsurance 11,785.0 2,401,075.9 11,797.0 2,357,158.6 Allocated investment return transferred from the non-technical account 705.0 143,636.7 532.0 106,298.9 12,490.0 2,544,712.6 12,329.0 2,463,457.5 Claims paid Gross amount 10,181.0 2,074,276.9 8,387.0 1,675,806.5 Reinsurers' share 3,418.0 696,383.3 2,967.0 592,836.3 6,763.0 1,377,893.6 5,420.0 1,082,970.2 Change in provision for claims Gross amount 6,726.0 1,370,355.2 1,388.0 277,336.3 Reinsurers' share 3,984.0 811,700.2 838.0 167,440.8 2,742.0 558,655.1 2,226.0 444,777.1 Claims incurred, net of reinsurance 9,505.0 1,936,548.7 7,646.0 1,527,747.3 Net operating expenses 3,668.0 747,318.3 3,755.0 750,286.6 Balance on the technical account for general business 683.0 139,154.4 928.0 185,423.7 Attributable to - continuing operations 538.0 109,612.1 1,652.0 330,086.1 - discontinued operations 145.0 29,542.3 724.0 144,662.4 Total 683.0 139,154.4 928.0 185,423.7 Non-technical account Balance on the technical account for general business 683.0 139,154.4 928.0 185,423.7 Syndicate investment return 705.0 143,636.7 532.0 106,298.9 Notional investment return on funds at Lloyd's 602.0 122,651.5 487.0 97,307.5 Investment return & other income on Society assets 191.0 38,914.3 148.0 29,571.9 1,498.0 305,202.5 1,167.0 233,178.3 Allocated investment return transferred to the technical account 705.0 143,636.7 532.0 106,298.9 793.0 161,565.8 635.0 126,879.4 Other expenses 213.0 43,396.6 196.0 39,162.8 Result for the financial year before tax 103.0 20,985.2 1,367.0 273,140.3 Statement of total recognised gains and losses Result for the financial year 103.0 20,985.2 1,367.0 273,140.3 Other recognised gains and losses 42.0 8,557.1 22.0 4,395.8 Total recognised gains and losses 61.0 12,428.1 1,345.0 268,744.5 2006 25
100-0004 1-5-4 17 03 3215 5291