Lloyd's has beaten market expectations to post £1.36bn profit for 2004.
This profit was achieved against net claims of £1.2bn from the US hurricanes, an event year for natural catastrophes.
But its combined ratio has risen to 96.9% compared to 90.7% in 2003. Lloyd's said this compares favourably with an estimated average of 98.7% for US property and casualty insurers and 106.1% for US reinsurers.
Lloyd's also saw a 52% increase in central assets to £1,184m, following the successful £500m subordinated debt issue last year.
Chairman of Lloyd's Lord Levene said: “These results, achieved despite significant losses from natural catastrophes, are testimony to the continually improving quality and strength of the Lloyd's market. A few years ago, such a performance would have been unthinkable.”
