Mr. Ward said that while no organization “can isolate itself from what has happened in the financial markets–particularly over the last three weeks,” he noted that from Lloyd's perspective, “we have learned from our mistakes in the past. We have reduced our exposure to financial institutions from an underwriting perspective, but we've also adopted a conservative investment strategy.”

As a result, Mr. Ward said, “any exposure we face will be manageable.”

The market's combined ratio rose 6.1 points to 89.0, up from 82.9 in June 2007–which, according to a joint statement from Mr. Ward and Lord Peter Levene, Lloyd's chairman, “once again compares well with our peers, but the increase is indicative of the significant challenges faced with weaker prices and easing of terms and conditions across almost all lines of business.”

The two added that “reductions in the volume of business written by a significant number of established syndicates was a welcome sign of underwriting discipline. Revenues were boosted by new business brought into the market by recent entrants.”

The interim report also noted that:

o Lloyd's combined ratio of 89 compares favorably with an estimated 99 for U.S. property and casualty insurers; 98 for U.S. reinsurers; 86 for Bermuda; and 96 for European insurers and reinsurers.

o Lloyd's said its investments returned ?346 million ($689 million).

o Lloyd's reported its “strongest ever central assets” of ?1.936 billion ($3.85 billion).

o Lloyd's financial strength ratings have been affirmed by A.M. Best, “A” (Excellent); Standard & Poor's, “A-plus” (Strong); and Fitch Ratings, “A-plus” (Strong).

Lloyd's expects to have capacity to write approximately ?15.95 billion ($29.56 billion) of business in 2008 via 75 syndicates. Lloyd's said its writings place its market in fifth place in terms of global reinsurance premium income, adding that Lloyd's is the second-largest surplus lines insurer in the United States