Lloyd's managing agent Faraday is aiming to increase its employers' liability (EL) premium income by 30% in 2004.

A Faraday source said the insurer was expecting UK and Ireland EL premium income to reach £75m-£80m next year.

"The increase will be largely due to higher EL rates, rather than a significant increase in the size of the book," the source said.

Increases in EL rates are prompting a number of Lloyd's underwriters to boost their EL capacity.

Last week it was revealed that Lloyd's insurer Abacus is to increase the capacity of Syndicate 2525 by £33m. Half of the new capacity, £16.5m, will be used for EL business.