?Lloyd’s underwriter Hardy will not make a decision on redomiciling to Bermuda until the Treasury says whether it will cut taxes for UK insurers.

Speaking as the insurer unveiled its interim results, Hardy finance director Jamie MacDiarmid said: “There are significant costs associated

with redomiciling. We will wait to see if theTreasury acts on tax.

“For a business our size, it would make sense to make a complete redomiciliation. This is outside of our current resources, although the issue is still on the agenda.”

Hardy has been considering a move to Bermuda for some time. Catlin, Hiscox, Kiln and Omega have already redomiciled, with the zero level of corporation tax in Bermuda seen as the incentive.

MacDiarmid added that Kiln may regret spending £4m on setting up in Bermuda should the Treasury reduce corporation tax.

Meanwhile Hardy reported pre-tax profit of £9.1m for the first half of 2007 up 49% on 2006.

Gross written premium was £88.8m up from £58.4m in 2006. The combined ratio improved from 84.4% in 2006 to 79.5%.

MacDiarmid said that the focus would be on new Syndicate 3820.