Lloyd’s says it made a “superb” start to the year, achieving its best interim result since 2007.

Profit before tax rose to £4.9 billion ($9.6 billion) in the June half, up from £3.9 billion ($7.6 billion) a year earlier, and underwriting profit surged to £3.1 billion ($6.1 billion) from £2.5 billion ($4.9 billion).

The combined operating ratio was 83.7%, improving from 85.2% in the corresponding half of last year.

Lloyd’s says the underwriting performance reflects supportive rate conditions and a favourable claims environment. The major claims ratio fell to 3.1% from 3.6%, reflecting the market’s low exposure to catastrophes.

Gross written premium grew 4.4% to £30.6 billion ($59.9 billion) as the market experienced “sustained” price increases, notching a 26th consecutive quarter of positive pricing in the three months to June.

The first half brought an average price increase of 1.5%, with small improvements across most major business lines and geographies, partially offset by casualty, which experienced a small decrease as cyber and directors’ and officers’ classes recorded rate reductions.

There was a 5% net increase in business volume, including growth from the strongest market performers and new entrants. Lloyd’s says syndicates have demonstrated their capacity to underwrite business that contributes to sustainable, profitable growth.

CEO John Neal says the results demonstrate Lloyd’s “continued strong, sustainable, profitable performance. The market’s combined ratio, a key measure of underwriting profitability, [is] our best interim result since 2007 and supporting an overall profit of £4.9 billion.

“The superb start to the year has ensured we are well positioned to respond to global change through the second half of the year and into 2025.”

He says the market sees positive trends across many lines, with property classes generally well priced but some attention still needed on casualty classes.

“As a whole, we’re seeing ‘super cycle’ conditions based on a protracted period of stable capital and underwriting conditions.”

The half-year profit was lifted by investment returns, which rose to £2.1 billion ($4.1 billion) from £1.8 billion ($3.5 billion).

Mr Neal says Lloyd’s remains alert for changes in market dynamics, including the impact of loss cost inflation and extreme weather, alongside a changing macroeconomic and geopolitical landscape.