Wellington has increased its estimate of the losses it faces from hurricanes Katrina, Rita and Wilma and said the increases put its previous forecast of a "small profit" for the current year at risk.
Wellington said that as a result of ongoing claims, the net loss estimate for Wellington's Syndicate 2020 from the hurricanes has risen to $485m from $330m and Wellington's share of this has risen by around $100m.
The group said: "Consequently, the previously disclosed net impact to Wellington's 2005 pre-tax profit of £90m from hurricane losses will be substantially higher."
It added: "Prior to the adverse development disclosed today, Wellington had anticipated it would report a small pre-tax profit for its 2005 financial year. The additional losses reported today will materially affect that estimate."
