Lloyd’s has reported its best first-half underwriting result in 17 years as it posted an overall profit before tax of £4.9 billion, or approximately $6.45 billion, in the first half of the year.

That compares with an overall profit before tax of £3.9 billion in the first half of 2023.

The market delivered an underwriting profit of £3.1 billion (HY 2023: £2.5 billion).

Gross written premium increased by 6.5 per cent to £30.6 billion (HY 2023: £29.3 billion) excluding foreign exchange movements (down 2.1 per cent), driven by volume growth (5 per cent) and price increases (1.5 per cent).

The market’s combined ratio improved year-on-year to 83.7 per cent (HY 2023: 85.2 per cent), its best interim result since 2007. The underlying combined ratio improved to 80.6 per cent (HY 2023: 81.6 per cent).

Lloyd’s said the investment return of £2.1 billion (HY 2023: £1.8 billion) was primarily driven by strong fixed income returns complemented by high growth in equity markets.

The organisation said a drive to improve performance and reduce the cost of doing business at Lloyd’s has resulted in a further 1.7 per cent reduction in the attritional loss ratio to 49.2 per cent (HY 2023: 50.9 per cent), and an improving expense ratio reducing to 34.5 per cent (HY 2023: 35.4 per cent).

Lloyd’s said it maintained a strong balance sheet with a central solvency ratio of 520 per cent (FY 2023: 503 per cent) and marketwide solvency ratio of 206 per cent (FY 2023: 207 per cent), highlighting the market’s capital discipline and resilience.

The organisation reported total capital, reserves and subordinated loan notes of £43.5 billion (FY 2023: £45.3 billion).

John Neal, chief executive of Lloyd’s, said: “The first half of 2024 has presented a superb set of results for the Lloyd’s market which represents a combination of disciplined underwriting, smart organic growth and real strength in the Lloyd’s balance sheet.

“This is good news for both investors in the Lloyd’s insurance marketplace and our customers as we continue to support them in an increasingly risky world.”