Lloyd's insurer Amlin said trading conditions remained good as it updated its forecasts for Syndicate 2001 for the 2002 and 2003 years of account.
Amlin said it saw continued strong levels of growth in its premium income, boosted by an increase in its ownership of the Syndicate.
Amlin owns 100% of the Syndicate's capacity for the 2004 year of account, up from 86% in 2003.
Syndicate 2001's gross written premium (net of brokerage) for the six months to the end of June 2004 rose to £580m compared to £539m for the same period in the previous year, net of quota share reinsurance.
The average renewal rate reduction in the first half of 2004 was -2.5%, weighted across Syndicate 2001's premium by business class, said Amlin.
It said the modest reduction in rates would continue to allow Amlin to earn excellent returns on Syndicate 2001's underwriting.
The forecast for the 2002 and 2003 years of account for Syndicate 2001 have both improved, said the insurer.
For the 2002 year of account, the forecast has increased from 15% to 20% to 16% to 21%.
For the 2003 year of account, the forecast has increased from 11% to 16% to 12.5% to 17.5%.
Amlin said both years continued to develop well, with low major loss incidence in the first half of 2004 benefiting the 2003 year of account.
The insurer said it expected the forecasts to continue to improve if a normal level of loss development was experienced.
