Lloyd's has announced pre-tax profits of £1.9bn for 2003, a 127% increase on its results for 2002.
It said the combined ratio had fallen from 98.6% in 2002 to 90.7% for the year. This compares with an estimated average of 100.7% for the US property and casualty insurers, 101.2% for US re-insurers, and 101.4% for European insurers and re-insurers.
Lloyd's also gave an initial projection of profits of £1.8bn on a three-year accounted basis for the 2003 underwriting year.
The central fund grew 49% during the year, reaching £711m, with total central assets up 39% to £781m.
Net resources for the society and members went up 35% to £10.1bn.
Chief executive Nick Prettejohn, said: “These results represent an encouraging underwriting performance and a further strengthening of the market's balance sheet following last year's return to profit.
“The 2003 result benefited from favourable external conditions, with strong premium rates and a low financial impact on the market from catastrophic loss.
“Lloyd's has outperformed our international peer group as businesses in the market have concentrated on delivering underwriting profit.
“Lloyd's franchise board took decisive steps in 2003 to strengthen the market, and there will be no let up in that work. In particular, we will continue to take strong action where businesses are under-performing.
“Lloyd's made good progress in 2003, in absolute and competitive terms. The task now is to maintain that progress.
“Consistently good performance, balance sheet strength and attractive returns for capital providers can only be achieved if businesses continue to write for profit and price risk adequately.
“The continuing increases to reserves across the industry, and conditions in the capital markets, mean that the need for an underwriting profit is as strong as ever.”
