LONDON (AFX) - Lloyds insurer Chaucer Holdings PLC saw first-half profits before tax to end-June fall to 25.3 mln stg from 35.8 mln stg on a weak dollar.

Gross written premiums were up to 371.8 mln stg from 263.3 mln in the first half of 2005, as the company benefited from high rates in most of its businesses.

Chaucer said that its combined ratio -- costs and claims expenses as a proportion of premium income, and a key indicator of profitability -- also rose to 85 pct from 80.9 pct. A combined ratio over 100 pct represents a loss.

Chaucer's progress was hampered by increasing competition in its motor insurance business, which has seen a continuing downturn in rates. 'Rate increases have not kept pace with claims inflation,' Chaucer chief executive Ewen Gilmour said, adding later in a press conference that the insurer would be raising rates in mid-2006, if circumstances allowed.

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