Lloyd’s maintains things are looking up despite the market posting losses for the second consecutive year.

Its pre-tax losses fell by half to £1 billion ($1.83 billion) last year, affected by Lloyd’s fourth-highest major claims cost from natural catastrophes since 2003.

The California fires, Hurricane Michael and Typhoon Jebi contributed to £2.9 billion ($5.3 billion) Lloyd’s paid in major claims.

But initiatives in place to revive the market and improved renewal rates give cause for optimism.

“The 2018 performance review process has now been integrated into the regular planning process, allowing continuous oversight of inadequately performing syndicates and classes of business,” CEO John Neal said.

“We have implemented stronger performance management measures, which will remain an enduring feature of how we go about our business.

“We expect these actions to deliver progressive performance improvement across the market beginning [this year] and in the years to come.”

Gross written premium fell slightly to £35.5 billion ($65 billion) from £33.6 billion ($61.5 billion) in 2017, and the combined operating ratio declined to 104.5% fro 114%.

Hurricane Michael, which devastated parts of Florida, was the largest insured natural catastrophe event.

In a separate statement, Lloyd’s has announced the departure last month of chief risk officer Hilary Weaver, after 16 years with the market.