Talbot Underwriting has said that its latest estimate for the net loss to Syndicate 1183 from hurricanes Katrina, Rita and Wilma is approximately £63m.
The figure is calculated after reinsurance recoveries and inwards and outwards reinstatement premiums.
Talbot's current forecast is that the loss is likely to cause Syndicate 1183 to report an overall loss for 2005, on a GAAP reporting basis.
The company has increased capacity of Syndicate 1183 by 9% to £307m.
Talbot said that for 2006, capital of $268m (£151m) had been provided to Lloyd's to support the syndicate. The Funds at Lloyd's ratio for 2006 is 48.4%.
Talbot's 2006 business plan, approved by Lloyd's, shows gross premium income on a Lloyd's basis (net of acquisition costs) of £293m. This is a 8.5% increase over the latest forecast gross premium income for 2005 of £270.1m.
Talbot said it has increased its forecasts, on a Lloyd's accounting basis, for the 2003 and 2004 years of account to profits of £47.1m in 2003 and £31.4m in 2004, representing 24.4% and 10.9% of syndicate capacity for the two years respectively.
These profits represent returns on syndicate capital of 60% in 2003 and 27% in 2004.
