Lloyd's, the specialist insurance and reinsurance market, has announced a profit of $0.8bn for the first half of 2018.

The market’s return to profit follows the severe catastrophe experience in 2017, with the result supported by an improved combined ratio of 95.5% (June 2017: 96.9%). Lloyd’s also reported a modest increase in gross written premiums to $26.7bn (June 2017: $23.8bn), driven by improvements in pricing and growth in some profitable lines. The reporting period also featured an improvement in the underwriting result up to $0.7bn from $0.5bn last year. This partly reflects Lloyd’s ongoing work that commenced in 2017 to review the worst performing portfolios, and the subsequent action by the market to reduce loss making lines.

Pre-tax profits were impacted by a reduced investment return of $0.3bn (June 2017: $1.3bn), which is consistent with the low returns seen across most asset classes over the period.

Lloyd’s capital position is at its strongest ever with net resources totalling $38.3bn (June 2017: $36.4bn).

Lloyd’s chief executive, Ms Inga Beale, said: “These results and return to profit demonstrate the strength of the Lloyd’s market following one of the costliest years for natural catastrophes in the past decade. Whilst these results are welcome, Lloyd’s continues to concentrate on improving the Lloyd’s market’s long-term performance by taking action to address underperforming areas of the market."