Lloyd’s expects no let-up in the tough trading environment after incurring a pre-tax loss of £2 billion ($3.7 billion) last year, it’s first deficit in six years.

Claims from major catastrophes including US hurricanes took a heavy toll on earnings.

“Following a costly year in terms of natural catastrophes, there continues to be attention on pricing levels in those lines affected,” Lloyd’s says in its annual report.

“Despite some improvement in pricing levels… it is crucial this does not mask the need to close the performance gap in many other lines, particularly those sensitive to attrition, and to correct pricing for exposures assumed.

“The macroeconomic environment shows no signs yet of becoming less challenging.”

Major claims more than doubled to £4.5 billion ($8.2 billion) last year from £2.1 billion ($3.8 billion) in 2016, and accounted for 18.5% of net earned premium, up from 9.1%.

The combined operating ratio blew out to 114% from 97.9%.

Gross written premium grew to £33.6 billion ($61.3 billion) from £29.9 billion ($54.6 billion), but the business made an underwriting loss of £3.4 billion ($6.2 billion), a turnaround from the previous year’s £500 million profit ($913 million).

“The result reflects the market facing one of the costliest years for natural catastrophes in the past decade,” CEO Inga Beale said. “The frequency and scale of the disasters that struck around the world saw major claims costing the Lloyd’s market.”

Hurricane Irma was the largest insured catastrophe event in the Lloyd’s market.