Specialist insurer Hardy Underwriting Group PLC said there is considerable competition in most lines of business but income levels can be maintained without jeopardising profit margins.
In an AGM statement on current trading, Hardy said significant industry losses arising from last year's hurricanes in the US have halted what would otherwise have been a trend of declining rates in most classes.
The most positively affected class underwritten by Hardy is the non-marine catastrophe excess of loss account which provided strong profits over a long period, but losses were sustained in 2004 and 2005 due to the high level of windstorm activity, primarily in the South Eastern USA.
The company said that these conditions provide considerable opportunity for underwriting profit, and the Hardy (Underwriting Agencies) Ltd board has concluded that the syndicate's aggregate retentions should be maintained to take full advantage of the attractive opportunities.
