Lloyd’s has announced a profit of £1.53bn (US$2.4bn) for the six-month period ending 30 June 2012.

The result follows a benign first half of 2012 for natural catastrophes for the insurance industry, one which saw no major claims, and which marks a return to profit after the second most expensive year on record for the insurance industry in 2011.

Lloyd’s incurred total net claims of £4,584m (US$7,243m), a fall of nearly a third on those the market experienced in the first half of 2011. And, despite record low interest rates, Lloyd’s investment return rose 13% to £619m (US$978m).

Lloyd’s CEO Richard Ward said: “This is a welcome return to profit for the market, after a six-month period that could not be in greater contrast to the first half of 2011.

“The result has certainly been helped by the favourable claims climate. But it is testament to the market’s disciplined underwriting that, in the face of continuing low premium rates, coupled with low interest rates and the most challenging economic climate for a generation, it is able to return the strongest half year result in five years.”

Chairman of Lloyd’s John Nelson said: “These results cap off a strong six-month period for Lloyd’s. We have seen the launch of our longer term strategy, Vision 2025, strong progress towards being ready for Solvency II, and our credit rating outlook upgraded from stable to positive by Standard & Poor's.

“Looking forward, the Lloyd‘s market – with its record capital levels, A and A+ credit ratings and strong reputation – is well-positioned to take advantage of opportunities that arise both home and abroad.”

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