Lloyd’s announced a profit of £3.2 billion [$5.2894 billion] for 2013, compared to a profit of £2.8 billion [$4.628 billion] in 2012. Gross written premium income increased to £26.1 billion [$43.14 billion]. Lloyd’s also noted that its capital position further strengthened with net resources of £21.1 billion [$34.874 billion].

The earnings announcement noted that 2013 was a “benign year for insured catastrophes,” with major claims to Lloyd’s totaling £873 million [$1.443 billion]. Despite this, total net incurred claims were £9.6 billion [$15.867 billion] in 2013, down from £10.1 billion [$16.696 billion] the previous year. Lloyd’s said UK flooding claims from 2013 are not expected to result in significant exposure.

Lloyd’s new CEO, Inga Beale, said: “Disciplined underwriting and a benign year for major catastrophes have enabled us to outperform our peers and post this outstanding profit of £3.2 billion. From this base, the Lloyd’s market has a great opportunity to expand in the underinsured, high growth economies around the world.”

Lloyd’s Chairman John Nelson said that while there were few catastrophe claims in 2013, continued low interest rates saw reduced investment income and high levels of capital continuing to flow into the market, which put pressure on prices.

“These conditions look set to persist,” Nelson said “I therefore expect increased competitive pressure on the market to remain in 2014. This underlines the need for continued underwriting discipline as we seek to maintain and reinforce our position as the global center for specialist insurance and reinsurance.”

Additional financial highlights were:

– A combined ratio of 86.8 percent (an improvement of 4.3 percentage points from 91.1 percent in 2012) compares favorably with our peer group’s1 combined ratio of 93.4 percent

– Total resources of the Society of Lloyd’s and its members at £59.5 billion [$98.365 billion, from £59.3 billion [$98.031 billion] in 2012

– Capital, reserves and subordinated debt and securities £21.1 billion, from £20.2 billion [$33.4 billion] in 2012

– Central assets of £2.384 billion [$3.94 billion from £2.485 billion [$4.107 billion in 2012

— Controlled premium growth of 1.6 percent, after taking account of the impact of foreign exchange and year on year risk adjusted rate change

— Investment returns of £839 million [$1.387 billion], down from £1.311 billion [$2.167 billion in 2012

— Prior year reserve surplus releases of £1.575 billion [$2.6 billion] from £1.351 billion [$2.233 billion in 2012

Source: Lloyd’s of London