Historic is a term synonymous with Lloyd's of London, the doyen of global insurers. Historic in terms of its noble 310-year history which, during the years of plenty, reaped historic profits for the wealthy "names" which underwrote the business. Historic also for the annual losses of over £2 billion per annum which brought the mighty institution to its knees during the dark period of the mid-1990s.

This week Lloyd's produced figures showing record annual profits of £1.1 billion. Alas the results, which cover the 1995 financial year, are also historic, Lloyd's curiously reporting market results three years in arrears. Chairman Max Taylor resisted basking in the glow of the strong recovery, emphasising that projections for 1996 and 1997 show a reduction in profitability, to £574 million and £366 million respectively.

Rejoicing among market backers will be tempered by the total deficit of £8 billion clocked up in the years 1988-92 and the current cyclical downturn in the insurance industry as a whole.