A statement by Lord Levene and Mr. Ward included in the report, available on the Lloyd's Web site, said: "The strength and attractiveness of the market was recognized by three rating agency upgrades. Fitch Ratings and Standard & Poor's upgraded Lloyd's financial strength rating to 'A-plus' and A.M. Best Co. affirmed the financial strength rating of 'A' and upgraded the issuer credit rating to 'A-plus.'"

According to the statement, Standard & Poor's "praised Lloyd's strong competitive position, operating performance, capitalization and greater financial flexibility..."

At the recent Reinsurance Rendez-Vous in Monte Carlo, Miles Trotter, assistant general manager of analytics with A.M. Best Europe, said at a press conference that Lloyd's popularity is "at an all-time high," for reasons that include recent upgrades and the fact that Equitas--its runoff facility for pre-1993 losses--was taken over by National Indemnity (NU Sept. 17, 2007).

According to the statement, the full-year results would be strongly influenced by "catastrophe claims activity in the last three months of the year. We are currently in the middle of the U.S. hurricane and Asian typhoon seasons, and it is impossible to predict what impact they may have."

It said the absence of severe catastrophic activity in the past 18 months "merely reinforces the need for a continued focus on underwriting discipline, as the benign environment puts downward pressure on rates."

Also included in the report:

o Investments returned over $1.6 billion (?800 million).

o Lloyd's financial strength ratings were upgraded to "A-plus."

o Central assets further strengthened through the issue in June of $1 billion (?500 million) tier 1 subordinated debt to more than $4 billion (?2 billion).

o Combined ratio of 82.9 percent (first half ending June 30, 2006 was 86 percent), compared with an estimated average of 93 percent for U.S. property & casualty insurers; 90 percent for U.S. reinsurers; 86 percent for Bermuda; and 97 percent for European insurers and reinsurers.