Shareholders in Kiln could be rewarded with a massive increase in its dividend payout at the end of a strong financial year.

Kiln chief executive Edward Creasy proposed a five-fold increase in the dividend from 0.6p in 2003 to 3.0p in 2004. It comes as Kiln posts preliminary results which show a 15% jump in profits from £33.1m in 2003 to £38.1m in 2004.

Combined ratio at the syndicate is expected to stand at a Lloyd's market lead of 86% - up from 77% last year. Gross written premiums also showed a significant rise to £313.5m, up 17% on the previous year.

But Kiln was unable to avoid the 2004 hurricane season. It announced a dip in its underwriting profit of 15% to £23.4m, after taking a £34m hit from extreme weather.

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