Lloyd’s has reported a pre-tax profit of £2.19 billion ($3.4 billion) for the 2010 calendar year compared to £3.8 billion ($5.9 billion) in 2009.

This result delivered a combined ratio of 93.3% for 2010 compared to 86.1% in the previous year.

Lloyd’s Chairman Lord Levene says the 2010 profit was achieved despite significant claims from the earthquakes in Chile and New Zealand, the Australian floods and the loss of the Deepwater Horizon oil rig in the Gulf of Mexico.

“The catastrophes of 2010 have shown the crucial role insurance plays in helping communities rebuild after a crisis,” he said. “These events are a reminder that the market must remain vigilant.

“A large part of the challenge for the Lloyd’s market is that it must prepare for the unexpected.”

Also see ANALYSIS