Lloyd’s reported a profit in the six months to June 30 after sliding to a loss last calendar year when claims from major catastrophes took a heavy toll

Profit before tax was £600 million ($1.1 billion), compared with £1.2 billion ($2.2 billion) in the corresponding period a year earlier, as a better underwriting result was offset by lower investment returns.

“These results and return to profit demonstrate the strength of the Lloyd’s market following one of the costliest years for natural catastrophes in the past decade,” outgoing CEO Inga Beale said.

Lloyd’s is focusing on improving its long-term outlook by taking action to address underperforming areas, she says.

The results are set to be the last delivered by Ms Beale, who is stepping down after five years in the role. Former QBE Group CEO John Neal will take over on October 15.

Gross written premium in the first six months rose 2% to £19.3 billion ($34.6 billion) after price increases across most lines on renewals, while the combined operating ratio improved to 95.5% from 96.9%.

Net investment income fell to £204 million ($366 million) from £1.04 billion ($1.87 billion).

“While much of the Lloyd’s market is profitable, some syndicates and certain lines of business have a disproportionate negative impact on the market’s profitability,” Ms Beale said.

Syndicates are being asked to conduct in-depth reviews of the worst-performing 10% of their portfolios, along with all loss-making lines, and to submit remediation plans for approval as part of the 2019 business planning process.

Lloyd’s says its capital position is at its strongest ever, with net resources totalling £29 billion ($52 billion), up from £28 billion ($50 billion) a year ago.