Claims dip lifts insurer Lloyd's

More than 90% of FTSE 100 companies are insured at Lloyd's

Fewer catastrophe claims and higher premiums have helped to lift profits at Lloyd's of London.

The world's biggest insurance market said profits rose to £1.8bn for the six months to 30 June from £1.35bn in 2006.

However, Lloyd's also warned full-year results would be strongly influenced by claims activity at the end of the year.

"We are currently in the middle of the US hurricane and Asian typhoon seasons and it is impossible to predict what impact they may have," Lloyd's said.

Lloyd's, which is made up of more than 60 underwriting syndicates, was badly hit by the multiple hurricanes of 2005.

Katrina cost the insurer £1.9bn alone while Wilma and Rita cost it an additional £1bn.

Meanwhile, Lloyd's said its combined ratio - a measure of profit that focuses on claims and expenses as a percentage of premiums - came in at 82.9%.

The latest figure indicated more profitable underwriting compared with last year's combined ratio of 86%. A figure below 100 represents a profit.