The London market continues to experience downward pressure on rates, but the effect on underwriters’ profits is masked by subdued claims activity, according to Beazley CEO Andrew Horton.

Beazley has reported a 17% increase in profit to $US133 million ($182.47 million) for the six months to June 30.

Mr Horton says US premium increased 25%, “counterbalancing the highly competitive conditions elsewhere”.

Gross written premium gained 2% to $US1.1 billion ($1.51 billion) and the combined operating ratio improved to 86% from 90%.

Lloyd’s business generates 68% of Beazley’s premium.

“The [Lloyd’s] market has been highly competitive for some time and rates continue to fall for catastrophe-exposed lines such as large-scale commercial property, energy and reinsurance,” Mr Horton said.