Lloyd's insurer Atrium Underwriting has reported a fall in pre-tax profits for the six months to 30 June, of £13.7m down from £15.7m a year earlier.

Atrium also said it will make a loss on its core underwriting activities in the second half because of Hurricanes Katrina and Rita. The insurer said it was sticking by its earlier estimate of a £15m insured loss from Katrina.

The insurer added that it was too early to provide an estimate of losses from Rita, which swept through Texas at the weekend, but said the combined effect of the storms would be to push its core underwriting operations into a loss over the second half of the year.

The company turned in a reduction in gross premiums written to £94.5m (30 June 2004 restated: £127.7m) and a net combined ratio of 86%(30 June 2004 restated: 84%).

Nick Marsh, ceo, said: "Following the recent Hurricanes, we believe that the market will harden, with improvements in the rates, terms and conditions for many classes. Hurricane Katrina, and to a lesser extent Rita, will of course adversely affect our full year results, however, our strong track record of responding to such losses gives us real confidence in our ability to capitalise on the opportunities that are already emerging."

Topics