Last year was a good one for Lloyd's of London. Profits more than doubled, surging to a record $5.81 billion, thanks largely to strong investment gains and a quiet catastrophe year. Investment gains last year amounted to $2.66 billion, an increase of 84.8%. But, it wasn't all just a rising tide in the financial markets. Lloyd's did pick up a gain of more than 20% in premium volume -- and currency fluctuations played a role.

Says Lord Peter Leven, Lloyd's chairman, the increase in profits "has been achieved despite the economic turbulence that characterized most of 2009, although we were certainly helped by a low level of catastrophe losses." In particular, a quite hurricane season in the Atlantic and Gulf of Mexico was kind to Lloyd's balance sheet.

U.S. stock futures were flat as investors take stock of a recent run-up in stock prices and four days worth of economic releases, with no new data scheduled for Friday.

Ahead of the opening bell on Wall Street, the Dow Jones industrial average, S&P 500 and Nasdaq Composite indexes were lower fractionally. Stocks ended Thursday's trading mixed, with the Dow Jones adding 45 points in its eighth straight day of positive sessions. The broader S&P 500 ended slightly lower Thursday, while the Nasdaq gained about 1%. Renewed concerns over the European nations' support for Greece in its debt crisis were countered by reports showing a decline in weekly jobless claims and tepid inflation.

Mergers are always a tricky business, and for an insurance industry with excess capital available, they're likely on the agenda for the coming year. Before giving in to the urge to merge, several major industry executives cautioned at the World Insurance Forum, it's crucial to make sure that the interests of both merging companies are aligned.

According to Brian Duperreault, president and CEO at Marsh & McLennan (MMC), "You are always going to run into problems during a merger so you need to make sure your interests are aligned. If you are divided when you start you will be still be divided at the end. Aligned management interest is what makes for a successful acquisition."

Long a topic of discussion, insurers and reinsurers are beginning to enter the microinsurance space. Scor (SCOR) firm invested in LeapFrog Investments, the first microinsurance fund, last month, and last week, the Microinsurance Network was launched in an effort to raise awareness of the sector.

In a mature industry, microinsurance is seen as having considerable growth potential, especially given the large numbers of people around the world who live without any form of coverage. Microinsurance protection ranges from property catastrophe to life and health. A recent study by Lloyd's of London found that 135 million people, 5% of the world's low-income people, are using microinsurance products, but that the total market size could range from 1.5 billion to 3 billion.

This port was written by Minyanville contributor Minyan Peter.

I think the Government will try at all costs to create the impression that only a limited number of banks are going to be nationalized. To achieve this, Secretary Geithner has requested that the top 15-20 banks in the country undergo a stress test, where regulators will review banks' capital positions under a variety of economic scenarios. And, based on these reviews, those banks that fail will be given convertible preferred stock to boost their capital levels to some yet to be determined level.

I am the Global Editor at MoneyShow.com and each week I interview an investing expert. This week, I spoke with John Snowden, contributor to The IRS Report newsletter, who says the British economy will slide deeper into recession and the markets will move lower, too.

Q. What is your outlook for Great Britain's economy in the next 12 months?

A. We are on the cusp of a recession, but we have yet to feel the real crunch from a retailing viewpoint. The forthcoming all-important Christmas trading period will give more of a guideline by [the middle or end of] January. There is as yet no real sign of confidence returning, which would suggest we are in for a long haul. Borrowings are at an all-time high and will probably double again next year. This may mean higher taxes as well as labor unrest which would be detrimental for the economy.

Lower oil prices do help and commodity prices are falling, and will start to be reflected in government statistics by early next year. Hence, economy fears are turning towards deflation rather than inflation

Q: So, at what point do you expect to see actual recession in the UK?

A: My guess is that Christmas festivities may distort the reality, but I am sure that by February 2009, we in the UK will be feeling the full weight of recession.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Lloyds TSB Group PLC (NYSE: LYG) is a favorite conservative stock idea for 2007 from Jack Adamo, editor of Insiders Plus.

"While it is not the Lloyd's of London of specialty insurance fame," points out Adamo, "this London-based financial services powerhouse has roots dating back to 1765, and operates in three segments: U.K. retail banking; insurance and investments; and wholesale and international banking. It also provides brokerage, asset management, and pension services.

"It's not exactly exciting, but I think it will noticeably outpace the market in 2007. What it has going for it is financial clout, with a $60 billion market capitalization and a current dividend yield of 5.7%. Growth in earnings is expected to come in around 12.5% from 2006 to 2007.

"Lloyds currently trades for 11.25 times expected 2007 EPS of $3.86 per share. I look for total return to come in at around 18% in 2007. Lloyds' high yield provides cover in a down market, and may add extra price appreciation as investors go for yield in a falling market. That could push total return to the 25% range.

"Another significant factor in its favor to consider is the likely appreciation of the British pound sterling against the U.S. dollar, which will provide a boost to returns for U.S. investors."