LONDON (Bloomberg) - Amlin plc., a Lloyd's of London insurer that does a quarter of its business in Bermuda, said first-half profit slumped on lower investments returns.

Net income fell to £108.1 million ($201.6 million), or 22.5 pence a share, for the six months to June 30, from £148.6 million, or 28.6 pence, a year earlier, the London-based company said yesterday in a statement. Investment income dropped two-thirds to £22.5 million.

"Unsurprisingly, a very challenging investment environment led to significantly lower investment returns, resulting in an overall reduction in first-half profits," the company said in the statement.

The insurer reduced its stock-market holdings toward the end of last year and protected more of its assets by investing in government bonds. Global stock markets have declined since a global credit-market crunch began last year on the back of rising defaults on US sub-prime mortgages.