Lloyd's pre-tax profit has increased 34% to £1.8 billion ($4.1 billion) for the first six months of the year, compared with £1.35 billion ($3.1 billion) for the same period last year.

The market's combined ratio improved from 86% to 82.9% and its central assets increased almost 50%, from £1.45 billion ($3.3 billion) to £2.17 billion ($5 billion).

Lloyd's claims its combined ratio compares favourably with competing markets, including Bermuda, Europe and the US.

In terms of gross written premium (GWP), the market was slightly down on the first half of last year, slipping from £9.97 billion ($22.9 billion) to £9.86 billion ($22.6 billion), reflecting the softening of the market.

CEO Richard Ward says Lloyd's was able to improve its results despite weaker underwriting conditions due to a favourable rating environment and a relatively low level of catastrophe claims.

But Mr Ward sounded a note of caution to the market on cycle management.

"We are now seeing a downward pressure on rates and a softening of conditions across all classes. This reinforces the continued need to focus on underwriting for profit," he said.

Improved investment returns and the release of reserve funds also helped to lift Lloyd's results.