Chaucer Holdings said trading conditions remained positive in major markets and that the company continued to benefit from a favourable loss experience.
The specialist Lloyd's insurer said the 2004 year of account had started positively with gross written premiums ahead of the total for the same period in 2003. Pricing remained strong, the insurer added.
Chaucer said the 2003 Syndicate forecast ranges had all improved, with the 2003 initial ranges either equal to or better than those for 2002 at the same stage.
It said motor Syndicate 587, which recorded a 15% return on stamp in 2001, should also achieve good returns in 2002 and 2003.
Marine Syndicate 1084 and non-marine Syndicate 1096 have benefited from high premium rates and low claims experience in 2002 and 2003, which Chaucer said should produce excellent returns for both years.
Chaucer merged Syndicates 587 and 1096 into Syndicate 1084 for the 2004 year of account. The merged syndicate has an underwriting capacity of £400.2m, compared to a combined total capacity of £387.8m for 2003. Chaucer has an underwriting interest of 77.6% in Syndicate 1084 for 2004, compared to an equivalent interest of 68.6% for 2003.
It said Syndicate 587 benefited from further premium rate rises across the UK motor market in 2003, increased business focus on non-standard risks and a disciplined approach to underwriting and cost control.
Chaucer said the marine and non-marine markets continued to experience a strong premium rating environment and a low level of catastrophe losses for 2003.
Although a significant amount of business was still on risk and the position could change if the expected claims and reinsurance experience worsened, Chaucer said the gross loss ratios after 12 months was very encouraging.
Chaucer said Syndicate 1176 traded in line with business expectations during 2003, its first year with Chaucer. Premium income is on target to reach capacity and claims experience remains within budgeted loss ratios, the group said.
In 2001 results, motor Syndicate 587 closed in the top half of the previously announced forecast as it benefited from excellent investment performance in the final quarter of 2003, said the Lloyd's insurer.
Marine Syndicate 1084 and non-marine Syndicate 1096 both closed within their forecast ranges. Chaucer said the results contained prudent WTC-related reserves.
