Wellington Underwriting said it expected to see rates during 2004 to show some reduction on those during 2003, on a weighted basis.
However, it said it still expected the rates to be above those of 1993, which it said was an exceptionally strong underwriting year.
In a statement prepared for an analysts meeting taking place today, Wellington said all classes were currently being written at levels that aim to exceed the group's 15% net target return on a risk-adjusted basis.
Following the end of its non-compete agreement with Aspen, Wellington said it expected to write up to £40m of property insurance through Syndicate 2020.
It said the 2003 year of account for Syndicate 2020 was developing extremely well, with the gross incurred loss ratio of 9.35% at 31 December 2003. The comparable figure for the 2002 year of account was 11.19%.
Wellington chief executive Julian Avery said rating conditions remained strong, with advantageous terms and conditions of coverage being maintained.
He said the group's strategy was firmly on track with a number of opportunities to create further shareholder value, both inside and outside Lloyd's, being considered.
Wellington Underwriting plans to announce its preliminary full year results on 4 March.
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