those of comparable markets, according to a new study by A.M. Best Co.

The structure of Lloyd's and the market's efficient use of capital have, however, allowed participants to outperform peers in terms of total return on equity.

A.M. Best -- America's oldest and most widely recognised insurance rating and information source -- analysed the financial results of Lloyd's and a select peer group from 1981 through the 1997 account year. The study found that Lloyd's underwriting return on net written premium was approximately 2.3 percent better than the London market -- the most appropriate peer group.

Lloyd's, however, under performed in the UK and US reinsurance markets by 2.5 percent and 3.3 percent.