London - Insurers Lloyds of London Tuesday announced 50-per-cent slide in pre-tax profits in 2008 amid a sharp rise in claims resulting from natural disasters around the world.

Lloyd's, the world's biggest insurance market, said pre-tax profits fell by 50.6 per cent to 1.9 billion pounds (2.7 billion dollars) in 2008, compared with 3.85 billion pounds for
2007.

The market has been hit by "significant claims from natural catastrophes, lower insurance rates and a reduction in investment income", said the firm.

Lloyd's is made up of 75 underwriting syndicates, which insure a wide range of items and businesses. Claims last year included North Atlantic hurricanes Gustav and Ike.

The volatility in world financial markets reduced Lloyd's investment returns by 52 per cent to 957 million pounds from 2 billion pound in 2007, the firm said.

But it said the losses were partly offset by currency movements and surpluses from previous years. Lloyds solvency improved over the year, with total assets growing to more than 2 billion pounds.

"Amidst the unprecedented slump in the world economy, Lloyd's remains in good shape," said Lloyds chairman Peter Levene. (dpa)