Atrium Underwriting missed out on recording a pre-tax profit for 2002, despite a major swing towards profitability.

Its £135,000 loss was an improvement on its £15.2m loss in 2001. But this turned into a profit after tax of £3.8m compared to a £15.5m loss.

Much of the result is affected by Atrium's three-year accounting system, which does not yet recognise profits from 2002 underwriting.

It plans to move to annual accounting.

Gross written premiums increased to £179.3m from £142.4m the year before.

Underwriting in 2000 and prior years made a loss of £573,000 compared to a previous loss of £9.4m.