Lloyd’s says gross written premium fell 4.1% to £14.8 billion ($27.4 billion) in the six months to June 30.

“The contribution of new syndicates and modest growth elsewhere was offset by a 3.3% decrease in the aggregate risk-adjusted rate, mainly driven by rate decreases in property treaty and energy business,” the market says in its half-year report.

Despite some challenging markets, Lloyd’s reported a £1.6 billion ($2.9 billion) pre-tax profit for the half, up from £1.3 billion ($2.4 billion).

The combined operating ratio deteriorated to 88.2% from 86.9%.

Claims paid in the half totalled £5.6 billion ($10.3 billion), down from £6.5 billion ($12 billion) in the corresponding period last year.

Lloyd’s says losses fell, but the aviation sector was hit by major incidents this year.

“As the commercial aviation sector approaches its busiest renewal period, terms and conditions and pricing will need to reflect risk exposures.

“The first half… also saw a number of headline weather-related losses, including cold weather events in North America and Japan, windstorm and tornado losses in the US, windstorm Ela and the UK floods.”

However, Lloyd’s says these events should not have a material impact on the market.

The casualty sector has reported some premium income growth, mainly in North America, while claims are growing only moderately.

“There is considerable activity in cyber-related risks, with an increasing demand for wider coverage and larger limits, which Lloyd’s is seeking to monitor. Conditions in the more specialist area of Lloyd’s motor sector in the UK remain challenging.”