Lloyd’s insurers Hiscox and Catlin both recorded combined operating ratios of 117% for the first half of 2011 as catastrophes hit that market hard.

Hiscox made a pre-tax loss of £85.6 million ($131.1 million) in the half, down on a profit of £97.2 million ($148.8 million) for the same period last year.

Hiscox Chairman Robert Hiscox says the reduced results were primarily due to “an exceptionally challenging first half-year”.

“2011 is reported to be the most expensive catastrophe year to the insurance industry on record after just six months, worse than the full 12 months of 2005, the previous highest on record,” Mr Hiscox said.

Its gross written premium (GWP) fell from £904.3 million ($1.4 billion) for the first half of 2010 to £847.5 million ($1.3 billion). The company says this is a result of it showing “discipline” in its underwriting.

Fellow Lloyd’s underwriter Catlin booked after-tax losses of $US201 million ($192.4 million) for the first half, down on a profit of $US86 million ($82.3 million) for the corresponding period last year.

Its catastrophe losses for the half totalled $US534 million ($511.1 million), which includes a $US115 million ($110.1 million) loss from the US tornados, and $US44 million ($42.1 million) in deterioration of its first-quarter losses.

GWP increased to $US2.7 billion ($2.6 billion), up from $US2.5 billion ($2.4 billion) and the company says it will continue with its strategy of diversifying its business globally.

CEO Stephen Catlin says his company’s “multiple hub structure, diversified portfolio and disciplined approach to underwriting will allow Catlin to prosper in the current market environment and put us in a good position to take advantage of opportunities whenever and wherever they occur worldwide”.