The Lloyd’s of London insurance market reported a 30 per cent drop in pre-tax profit to £2.1 billion yesterday, hit by a fall in investment returns and pressure on prices.

The market’s return on capital fell to 9.1 per cent from 14.1 per cent a year earlier, and investment return dropped to £400 million from £1 billion in 2014.

“In a market undeniably tougher than seen for many years, we have had to demonstrate our ability to adapt and take action,” Lloyd’s chairman John Nelson said in a statement.

“In these conditions, these results are creditable.”

More than 80 syndicates underwrite insurance at specialist insurance market Lloyd’s, housed in one of the most recognisable buildings in London’s main financial district.

The market’s combined ratio, a measure of underwriting profitability, weakened to 90 per cent from 88.4 per cent in 2014.

A level below 100 per cent indicates a profit.

Gross written premiums rose six per cent to £26.7 billion.