Lloyd’s has reported a 39% jump in first-half net profit of £1.32 billion ($2.44 billion), driven by strong underwriting and resurgent investment income.

Underwriting profit remained steady at £678 million ($1.25 billion) while investment income of £708 million ($1.3 billion) was more than double that earned in the corresponding period last year.

A weaker US dollar and increasing demand from international clients pushed gross written premium up more than a third to £13.5 billion ($24.9 billion). The Lloyd’s combined ratio was 91.6%.

“The market is in solid financial shape and business volumes have increased as a result of brokers and policyholders seeking to use the security of the Lloyd’s platform,” Chairman Lord Levene said.

Despite the positive earnings he warned that external conditions remain difficult “with the US windstorm season and recessionary trends continuing to pose a threat to the insurance industry”.