Lloyd’s says it is continuing to outperform its international peers after announcing a £3.8 billion ($8.3 billion) profit for last year.

The global insurer recorded a combined ratio of 84% and a 34% increase in central assets to £1.95 billion ($4.3 billion).

Gross written premium for the year was £16.37 billion ($35.7 billion).

Lloyd’s says in its annual report that the positive results stem from an “appetite for risk and an ability to turn risk into reward”.

“While the number of catastrophic events was higher than in 2006, the year was relatively benign when considering insured losses,” the report said.

Chairman Lord Levene says the market has benefitted from low exposure to catastrophes but this has led to increased pressure on rates across all lines of business.

“The need to exercise underwriting discipline and maintain a focus on underwriting for profit rather than market share remains essential,” he said.