Assets in Lloyd's central fund, from which outstanding claims are paid, jumped 66 percent to $1.273 billion, while net resources of Lloyd's are up 50 percent to $18.2 billion.

These figures mark a continuing turnaround for Lloyd's that began in 2002, when the market reported its first profit in six years after a period of downturn that included a huge loss from the Sept. 11 terrorist attacks. During the 1990s, the market suffered heavily and was brought to the verge of collapse from various costly events, including hurricanes, the Exxon Valdez oil spill and unresolved asbestos-related claims.

Lloyd's said its latest results for 2003 reflect strong pricing from rising global risks as well as low catastrophe payouts from fewer natural disasters. The profit numbers in dollars are calculated using conversion rates of $1.79 for one British Pound for 2003, and $1.61 for 2002 figures.

Lloyd's said the 2003 profit figure is based on its pro forma annual accounting basis, and using Lloyd's traditional three-year accounting basis, the initial profit projection for 2003 comes in slightly lower at $3.186 billion. (Lloyd's will formally start reporting its results on the yearly basis beginning next year, using current U.K. GAAP annual accounting procedures.)

Commenting on the 2003 results, Chairman Lord Peter Levene said Lloyd's is in "good shape after a year of strong progress."

Lloyd's Chief Executive Nick Prettejohn said the results represent a further strengthening of the market's balance sheet following 2002's return to profit and "the 2003 result benefited from favorable external conditions, with strong premium rates and a low financial impact on the market of catastrophic loss."

The task now, Mr. Prettejohn said, is to further build on that progress. "The continuing increases to reserves across the industry, and conditions in the capital markets, mean that the need for an underwriting profit is as strong as ever," he said. "We will continue to take strong action where businesses are underperforming."

Winifred Baker, president of Lloyd's America Inc., told National Underwriter that the strong 2003 results "have many positive components."

"Certainly the premium rates are still strong. And we had a few catastrophes?but certainly nothing huge. That has helped," she added.

Ms. Baker also noted that Lloyd's various reform efforts that began in 2002 are going well and that they are already showing positive results, including introducing a new franchise structure.

"I think the progress being made in London with the Franchise Board, the overseeing of business plans and pushing the reform program has started to pay off a little bit?we will see more payoffs from that as we go forward into 2004 and 2005," Ms. Baker said.