Lloyd's is expected to report record full-year profits of more than £1bn next month, claimed a report.
It said it would take several more years for the £3.1bn loss in 2001 to be wiped out, but that next month's results were expected to show an increase on the £834m profit made in 2002.
Syndicate figures are still being counted, said the report, but those syndicates which had already reported their full year results have shown strong results.
JP Morgan insurance analyst Gerald Farr, said: “We have a positive view on the prospects for Lloyd's.
"We judge that the sector is overlooked owing to its traditional volatility but that Lloyd's new tougher regime will be instrumental in reducing performance volatility.”
Lloyd's said it would not comment on profits before it published its full year results on 7 April, said the report.
It said Lloyd's had reminded syndicates that it was important to ensure that they did not underwrite any policies that could undermine the market's recovery.
