Hardy looks to new business to help increase premiums

Specialist insurer and reinsurer Hardy Underwriting Bermuda Ltd expects to write gross written premium in excess of £300m for the 2010 financial year, up from 2009’s £242m, according to the firm’s first-quarter interim statement.

The company said that because renewal rate increases were broadly flat, the increase will mainly be generated from access to additional business streams.

Hardy expects further growth in gross written premium in 2011.

Its plans to open an office in Singapore are advanced, and the intention is for the business to be underwriting in time for the 1 January 2011 renewals.

Hardy reported Q1 rate increases of 1.5% across business lines. Gross written premium for the quarter increased by £3.5m from Q1 2009, to £151.2m. Despite the premium growth, the company said that claims from the Chilean earthquake and Australian hailstorms will affect pre-tax profit expectations for the 2010 financial year.

The insurer estimates claims from the Chilean earthquake of between £13m and £20m, while it expects Australian hailstorms to cost it around £10m.