An "exceptionally low" level of catastrophes led to Lloyd's of London insurance market making profits of £3.66 billion in 2006.

The market, home to 66 insurance syndicates, lost £103 million in 2005 after two years of severe hurricanes in the United States.

The number of hurricanes in those years - including Katrina, which devastated New Orleans, and Rita - meant that last year's market benefited from higher rates on wind-exposed areas and business.

However, Lloyd's chairman Lord Levene said it would be unrealistic to expect such a favourable claims environment to continue this year.