Chaucer has said it expects group pre-tax profit to be "not less than £34m" for the six months to 30 June, materially ahead of its expectations, mainly due to a strong underwriting performance and the effect of International Financial Reporting Standards.
The insurance company said it was too early to make a reliable estimate of the impact of the effects of Hurricane Katrina, but it estimated that the cost to the group, net of reinsurance and reinstatement premiums, would be £35m before tax.
It added that Katrina was destined to become the largest single insured loss on record and would cause premiums to move upwards across a number of classes, not only in those areas affected.