The Lloyd's of London insurance market's pre tax profit slid in 2004 because of heavy claims from the hurricanes that hit the United States last autumn.
The world's largest insurance market said it had pre tax profit of £1.36 billion in 2004, down from £1.89 billion in 2003.
The market had claims of £1.2 billion from the string of hurricanes that wreaked havoc across the Caribbean and southeastern US, it said.
"Market conditions remain profitable but increasingly competitive in a number of lines," Lloyd's Chief Executive Nick Prettejohn said in a statement.