Ascot Underwriting, has received both Lloyd's and capital support to increase the capacity of Syndicate 1414 for 2005 from £410m to £435m.
Ascot chief executive Martin Reith said: "We have always adopted a policy of rigorous capital management and would expect a high utilisation of our original 2005 capacity. This mid-year pre-emption will enable us to seize market opportunities in the light of the hurricane losses."
Lloyd's has also agreed to Ascot's 2006 business plan enabling Syndicate 1414 to increase capacity to £550m from January.
