Lloyd’s has ridden the crest of a resurgent global economy to post a record profit of £3.8 billion ($6.2 billion).

The result is more than double Lloyd’s 2008 profit result, helped by a lull in natural catastrophes – particularly by a relatively benign Atlantic hurricane season.

Investment returns shot up by more than £800 million ($1.3 billion) to £1.77 billion ($2.89 billion), underlining the stability returning to financial markets, while combined ratios improved to 86.1% from 91.3% in 2008.

CEO Richard Ward says the market should be “proud of what it has achieved”, but there’s no room for complacency.

“While the results are a testament to our strength, we cannot afford to be complacent and in 2010 we must work to continue to develop the attractiveness of the market, while focusing on profitable underwriting and sound risk management,” he said.

The increasing stability of financial markets is a key element in Lloyds’ success, Mr Ward said.

“There were few, if any, significant failures among insurance businesses in the year. Insurers whose balance sheets were weakened by the financial turmoil saw their capital levels largely replenished as confidence was restored and stock market values increased.

“That said, our outlook for 2009 was dominated by concerns about the impact of the financial crisis, and this will remain the case during 2010.”