Lloyd’s insurer Hardy Underwriting, said the 2001 year of account for Syndicate 382 had closed with a profit of 11.4% of capacity, slightly above the mid-point of the previous forecast of 8.5% to 13.5%.
Hardy said it had also reduced the forecast for the 2002 year of account. It blamed the falling value of the US dollar compared with sterling for the downgrading.
The result for the 2002 year of account is now forecast as 13.5% to 18.5%, compared with the previous range of 15% to 20% of capacity, said Hardy.
Hardy said: “Approximately 70% of the syndicate’s income is received in dollars and, while the rating environment has remained strong from 2002 through to the present, the current weakness of the dollar has had a disappointing impact on the likely bottom line result of the syndicate.
It said the 2003 year of account was progressing well, with the result expected to produce a reasonable profit, although there had been more loss activity than in 2002.
Chief executive Barbara Merry, said: “To declare a 2001 account profit which is in excess of our desired long term average return is a remarkable achievement for our underwriting team, particularly when the majority of our competitors are looking at significant losses.
“Our continued focus on niche lines of business, where we have particular expertise, has allowed the syndicate to maintain profitability without unduly exposing supporting capital.
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