A dramatic rise in claims has resulted in Lloyd’s positing an interim pre-tax profit of £628 million ($1.02 billion) for the six months to the end of June.

This compares with the corresponding result last year of £1.32 billion ($2.16 billion), and is being blamed on a dramatic rise in claims.

Lloyd’s Chairman Lord Levene says the first six months of claims were the highest on record for the interim period.

“The first six months of 2010 were the costliest on record since we began interim reporting, testing not only Lloyd’s but insurers around the globe,” he said.

“While events such as the Chilean earthquake and the Deepwater Horizon loss have proved challenging, paying these claims and supporting our policyholders is what we are here to do.”

The amount paid for claims in the six months was £5.85 billion ($9.58 billion), of which £1.45 billion ($2.37 billion) was covered by reinsurance.

This included $US1.4 billion ($1.44 billion) for the Chilean earthquake and between $US300-$US600 million ($310-$620 million) for the Deepwater Horizon oil rig disaster in the Gulf of Mexico.

The rise in claims also included UK motor insurance, hit by a rise in third-party claims, and ongoing payments arising from the US subprime and global banking crisis.

Lloyd’s results were also hindered by a modest rise in gross written premiums for the six months to £13.49 billion ($22.09 billion), up a mere 0.2%.

The earned premiums net of reinsurance were £8.28 billion ($13.56 billion), compared to the 2009 interim result of £8.08 billion ($13.23 billion).

Lord Levene says despite the tough market conditions, Lloyd’s was still able to make a profit.

“It is a true indication of the strength of the Lloyd’s market that despite challenging investment conditions, softening rates and exceptional catastrophic events, we have returned a first-half profit,” he said.