Lloyd’s has announced a pre-tax profit of £1.19 billion ($2.6 billion) for the first half of this year, down from £1.65 billion ($3.61 billion) in the corresponding period last year.

The market recorded a combined operating ratio of 89.5%, compared with 87.4%.

Lloyd’s continues to show long-term economic strength, with an A rating from AM Best, A+ from Standard & Poor’s and AA- from Fitch.

CEO Inga Beale says a modernisation strategy has ensured Lloyd’s continues to play a “vibrant” role in the world’s specialist insurance and reinsurance market.

“These results demonstrate Lloyd’s success and resilience despite challenging underwriting and investment conditions,” she said. “This sizable profit is in large part due to the market’s expert underwriting and our deep commitment to rigorous oversight.”

Chairman John Nelson acknowledges “there is little doubt challenging times lie ahead”, but he remains upbeat.

“Lloyd’s is in a robust financial position, well capitalised and well reserved to face the future,” he said.

“With an expanding international footprint across Asia, Latin America and the Middle East, Lloyd’s influence and relevance as a global force for effective risk management has never been stronger.”