Softening market conditions and a rise in attritional claims cut the pre-tax profit of Lloyd's in half for the first six months of this year–down to ?949 million (about $1.88 billion at current exchange rates) through June, compared with ?1.81 billion (about $3.48 billion) for the same period the year before.

Lloyd's said in a statement that a conservative investment mix has resulted in a positive return of approximately 1 percent, “which showed the impact of the extreme volatility in the capital markets, with both equity and bond holding adversely affected.”

“It comes as no surprise that our profits are reduced, because of softening market conditions and also an increased number of claims. We have been anticipating this,” said the chief executive officer at Lloyd's, Richard Ward.

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