Mr. Levene said Lloyd's performance for the year reflects the new franchise and flexible capital structures that he asserts have put a clear focus on profitable underwriting.

Lloyd's said it has the capacity for $26 billion of business in 2006, an increase of 7 percent from last year.

Growth for this year could emerge from China, which last year granted Lloyd's a permit to establish an on-shore reinsurance operation.

Standard & Poor's London-based analyst Marcus Rivaldi called Lloyd's results "credible" and within expectations.

He was particularly impressed with Lloyd's solvency ratio of 379 (with the higher number the better) that compared to 145 shortly after the World Trade Center attack.

But rather than the reforms that Mr. Levene lauded, Mr. Rivaldi said it is the hard-priced market of the past five years that has served to shore up the market's finances in such an impressive manner.

As for this year, Mr. Rivaldi said the early indications of the June and July renewal season indicate more profitable times for the reinsurance sector at least.

"It will take a real soft market to see how the reforms bite, but so far the hurricanes keep putting that off," he said.