§ Lord Rentonasked Her Majesty's Government:
Whether the statement of the Department of Trade and Industry that Lloyd's Insurance has in the past 10 years made a contribution to the balance of payments varying between £709 and £2,319 million a year, represents merely the gross premium income received by underwriters and whether losses and expenses should be deducted from those figures in order to arrive at the net result.
§ Lord InglewoodThe figures quoted in the Question included underwriting and investment results together with the contribution made by brokers. If this last item were to be excluded, Lloyd's contribution to the UK balance of payments in the past 10 years (comprising the net underwriting result (premiums less claims less overseas expenses) and earnings on underwriters' investments overseas) would vary between a deficit of £112 million and a surplus of £1,674 million. However, as my right honourable friend the President of the Board of Trade indicated in the letter from which the noble Lord has taken the figures, these data do not represent annual performance exactly because, in the nature of insurance business, claims may be paid some months or years after the corresponding premium income was received.