Lloyd’s of London has posted its first loss in six years after an “exceptionally difficult” 2017, which was one of the costliest periods for natural disasters in a decade.

The insurance market today revealed an aggregated market pre-tax loss of £2 billion for 2017.

After a number of “relatively benign catastrophe years,” the frequency and scale of the disasters that struck around the world in the second half of 2017 cost the Lloyd’s market £4.5 billion in major claims – more than double the previous year.

That loss activity generated an underwriting loss of £3.4 billion, compared to £0.5 billion profit the previous year.

Combined ratio surged to 114.0% from 97.9% in 2016, reflecting larger payouts for claims than the revenue generated from premiums.

Lloyd’s CEO Inga Beale said in a statement that the market had experienced an exceptionally difficult year, “driven by challenging market conditions and a significant impact from natural catastrophes.”

“These factors mean that for the first time in six years Lloyd’s is reporting a loss,” she said.

“Lloyd’s is here to support customers when it matters most, providing the financial support to enable businesses, governments, and most importantly people to recover and rebuild their lives as quickly as possible and I’m proud of the market’s response.”