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00:00There's so much optimism isn't because people feel like we're at the tail end of the financial crisis. It certainly does. Now we had a financial services gathering of many of the governors CEOs of banks insurers yesterday and we were all very positive about economic growth in the future but we must bear in mind that we don't want a financial crisis to happen again. So I have to say a lot of our focus was looking at potential systemic risk in the system that could come that could create a crisis in the future. So we did spend some time on that albeit we were all very very positive about the future. What's different about this recovery from before. Well it just seems that we've had regulation come in very very heavy and that's and we had a lot of rescuing from the central banks of establishments that could have gone under. So they secured the future that a lot of the shareholdings in these banks by government bodies have now stopped and the future is looking bright. Now when we look at the potential systemic risk what was very interesting was that we actually came up with cyber as being one of the bigger risks these days. And there's been a lot of talk at this conference about cyber risk cyber security high on every single business CEOs agenda doesn't matter how small or how big you are. That's one of the threats. And that was an interesting switch to say 10 years ago we would never have been thinking about cyber security as being a threat to the economic system. One of the focus here is also the U.S. economy . Trump takes credit for it. It's a different economy right now . But you know if you're seated in Asia what's happening here does not even matter what's happening in the U.S. It doesn't even matter if growth is going from 4 to 7 percent for every country in Asia the rest of the world does not really matter . Lloyd's is a very global business. We're an insurance market been around for over 300 years writing and doing business in over 200 countries. So I was in Asia last week I was in Hong Kong attending an Asian financial forum. The mood was extremely buoyant but they're all focused on Asia. There's so much growth happening there. It's an incredibly exciting place to be . Lloyd's has got platforms in of many those countries there whether it's China Singapore. We opened up in India and the future is bright. The GDP is growing and off the back of GDP growth. We then see a demand for insurance with 4 billion people in Asia. They've got a lot to be positive about. So what kind of growth are you anticipating in Asia. Well for your interest yeah for insurance because it's so new and we've got people having assets. We've got business for the first time wanting to protect them. We've got businesses investing in things for the first time. We have actually seen 100 percent growth year on year and some of those markets. So it can compensate for a potential slowdown that you could see PPOs Brexit in Europe. Yeah. For for us the US is also very important over 45 percent of our business actually comes from the US. So to see the US being being buoyant and growing also is very good for us. Europe is a bit of a question mark. Now we we've been doing business in Europe and we have a big chunk of business both in the EU 27 markets as well as the UK but that of course is is is a bit of a different dynamic at the moment because of the Brexit sort of question mark hanging over all businesses. And speaking of Brexit has there been a change of tone. Has there been a softening of language when the government speaks to leaders about Brexit they the government does have conversations with businesses behind closed doors but these days nothing can really be behind closed business and therefore they've got they've got they can they can only really share with us what what is out in the public domain. Now this is an incredibly public negotiation. It's so complex. Just the amount of pieces of legislation that have to be brought into the UK for financial services is something like 9000. It's astonishing. So this is and that's just one sector. So the government has a lot of complexity to deal with and they've got to have the negotiation out in public and people need to posture when you're negotiating you don't want to reveal all your cards . You have to play things close to your chest. So it's a very difficult situation. However when the government and we recently met with Theresa May and Philip Hammond Chancellor of the Exchequer the financial services community they did fill us with some confidence that by the end of this first quarter we'd have a much better idea about the implementation period for Brexit Anna Edwards How long have we got to get our business models ready to be outside of the EU. But you're not wedding you've already made alternative plans in Brussels. How big is that. We have about 5 percent of our business will have to go through that subsidiary so that's two. Two billion two billion to put five billion euros of business will flow through that subsidiary. That's to ensure that we can provide that continuity to all of EU 27 customers. And the reason we're going ahead really full steam ahead right now to be ready by January 2019 is because Lloyd's is a market. We've got numerous members of the market. We've got numerous intermediaries. We need to give them the confidence that there's a solution for them to continue trading post Brexit. When you take a look at the insurance business there's been some kind of consolidation you see further consolidation within the industry. There is likely to be further consolidation. But on the on the same time we've got all sorts of new start ups happening. I mean this is what is so great obviously about the world and commerce is that every time there's some consolidation happening there's something new happening on the side and that's exactly sort of fits into the Lloyd's model Lloyd's has always been sort of entrepreneurs and we have this courage of this ethos of regeneration. So while we have mergers and acquisitions and things consolidating we've always got this news these new startups the new aren't timid entrepreneurs coming in with new ideas wanted to do new products and being really at the heart of innovation and just one final question before we let you go. I mean we're expecting Trump to deliver his message at 2:00 p.m. local time. What are you hoping for him to say. We need him to be obviously very optimistic about the US. We can see the confidence that that is that is that is sort of the confidence from the US is then losing out to others. And people are saying right now the future is bright. So we do need him to be confident. The rhetoric though of lot of the European leaders has been and actually in Asia has been. Come on let's get rid of these protectionist those let's not put up these walls whether they're whether them physical warhorses or metaphoric walls. Let's not put them up. And that's been really a cry out from the rest of the world. The world relies on global trade on free trade to be successful and to move forward. So if we can hear some more of that we'd be great for .

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Lloyd's CEO Beale Sees 'So Much Growth' in Asia

Lloyd's of London Chief Executive Officer Inga Beale discusses financial services and the economy. She speaks with Bloomberg's Haslinda Amin on "Bloomberg Daybreak: Europe" at the World Economic Forum's annual meeting in Davos, Switzerland. (Source: Bloomberg)

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