Lloyd’s has reported a pre-tax profit of £2.1 billion ($3.4 billion) for last year, unchanged from 2015, and says it will open a European Union subsidiary in Brussels post-Brexit.

The Belgian office will ensure Lloyd’s has continued access to the EU market and can write risks from all 27 member economies and three European Economic Area states.

It will be operational for the January 1 renewal season in 2019, subject to regulatory approval.

“It is important that we are able to provide the market and customers with an effective solution that means business can carry on without interruption when the UK leaves the EU,” CEO Inga Beale said.

“Brussels met the critical elements of providing a robust regulatory framework in a central European location, and will enable Lloyd’s to continue to provide specialist underwriting expertise to our customers.

“I am excited about the opportunities this venture will offer the market by providing that important European access efficiently.”

Last year presented some of the toughest underwriting conditions for Lloyd’s and the industry, with premiums under sustained pressure.

Lloyd’s major claims grew sharply to £2.1 billion ($3.4 billion) from £700 million ($1.14 billion), its fifth-highest figure since 2000.

The combined operating ratio worsened to 97.9% from 90%. Gross written premium grew to £29.9 billion ($48.77 billion) from £26.7 billion ($43.55 billion), but underwriting profit declined to £500 million ($815.66 million) from £2 billion ($3.26 billion).

“As has been well documented, challenging market conditions continued to prevail throughout [last year], and although there are suggestions that pricing reductions may be beginning to slow, premiums remain under a continued downward pressure,” Ms Beale said.