Lloyd’s has returned a profit for the first time in six years, and CEO Nick Prettejohn says it’s been made possible by the market’s “resilience and disciplined approach at a time when the industry as a whole has faced many difficulties”.

The $1.3 billion profit was made for 2002. Lloyd’s traditionally reports its results on a three-year basis but is switching across to an annualised system under the reforms pushed through last year. Analysts said the profit resulted from hefty premium increases, very low claims and disciplined underwriting.

Lloyd’s recorded a $8 billion loss for 2001 following the September 11 terrorist attacks and other catastrophes like the Petrobras oil platform collapse and terrorist attacks at Sri Lanka’s Colombo Airport.

Mr Prettejohn said the state of the capital market and the continuing actions by many insurers to increase their reserves for past underwriting means the Lloyd’s market “should enjoy positive trading conditions in the medium term”.

He said the market has remained buoyant so far this year, with high premiums and low claims helping things along.