LONDON (Reuters) ? 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, it said yesterday. The world?s largest insurance market said it made a pre-tax profit of ?1.36 billion ($2.56 billion) in 2004, down from ?1.89 billion in 2003, when its profits were boosted by an unusually low level of big claims.

The market?s 2004 results were hit by claims totalling ?1.2 billion from the string of hurricanes that wreaked havoc in the Caribbean and southeastern United States, it said.

Last December?s Asian tsunami, which killed more than 200,000 people and pounded Indian Ocean coastlines, also cost Lloyd?s ?100 million.

Lloyd?s profit also took a ?276 million hit, after tax relief, from the settlement it reached last month with six insurers over a dispute concerning cover that Lloyd?s bought from them to protect its Central Fund.

The settlement, in which the insurers led by Swiss Re agreed to pay Lloyd?s ?152 million, lowered Lloyd?s profit as it had to write off the extra payments it had anticipated from the ?500 million policy, Lloyd?s said.

Asked at a press conference whether Lloyd?s might consider suing Benfield Group Ltd. and Aon Corp., the brokers who arranged the Central Fund policy, its Chief Executive Nick Prettejohn said: ?It?s far too soon to comment on the implications of the settlement.?

Lloyd?s central assets were up 52 percent to ?1.18 billion, following a ?500 million subordinated debt issue last year.