Lloyds' half-yearly profit falls to 628 mn pounds

British insurance major Lloyds' pre-tax profit slumped to 628 million pounds in the first half of 2010, bogged by significant claims due to the Chilean earthquake and the disastrous Gulf of Mexico oil spill.

It had raked in a pre-tax profit of 1.3 billion pounds in the year-ago period.

"The result reflects a period of significant claims and extremely challenging investment conditions," Lloyd's said in a statement on Tuesday, while announcing the interim results.

Chairman Lord Levene said the first six months of this year were the costliest on record since the firm began interim reporting.

"While events such as the Chilean earthquake (earlier this year) and the Deepwater Horizon loss have proved challenging, paying these claims and supporting our policy holders is what we are here to do," Levene said.

The explosion of the Deepwater Horizon oil rig in Gulf of Mexico this April spilled millions of barrels of oil into the sea.

According to Lloyds, the global insurance market has experienced one of the largest catastrophe losses in the first half of a year.

"Our resolute focus on underwriting discipline, close attention to our customers' needs and a prudent approach to investment stands us in good stead for the second half of the year," Chief Executive Richard Ward said.