Lloyd’s reported a profit of £1.67 billion {$2.7218 billion] for the first six months of 2014, marking a 21 percent increase on the corresponding period last year.

The announcement said that “while these results show an improvement over the equivalent period in 2013, market conditions are becoming increasingly challenging.”

Lloyd’s CEO, Inga Beale believes the results are reflective of the market’s expert underwriting. “Continued innovation, combined with robust oversight and financial strength, all ensure the successful operation of the market despite challenging conditions,” she said.

Lloyd’s also noted that in June it “received a rating upgrade by Fitch from ‘A+’ to ‘AA-’, citing Lloyd’s excellent underwriting oversight, and investment in risk and exposure management practices as part of Solvency II preparations.”

Lloyd’s Chairman, John Nelson said the half year results are particularly positive in the current competitive environment: “The Lloyd’s market continues to remain in a strong financial position, and this solid foundation means Lloyd’s is in a great position to continue to expand in both established and high-growth economies around the world.”

Source: Lloyd’s of London