Prettejohn talks of share over profit

Nick Prettejohn, chief executive of Lloyd's, said in his speech that insurers must create shareholder value.

Prettejohn said the insurance industry must create an adequate return on capital, adding: "In the end, generating sustainable positive cash flow and earning a return on capital that exceeds the cost of capital is what matters."

Later, Prettejohn expressed his belief that market share is less important than profit. He accepted that this might mean some risks would not be covered. "There is no point being innovative to the detriment of shareholder value," he said.

Prettejohn also highlighted the importance of cutting costs to increase profit. He said: "Despite the predominance of underwriting issues, business process must remain high on the agenda. We must and will deliver business process change."