Kiln first half pretax profits fall by over £3m
Kiln has reported a fall in first half pretax profits, which dropped to £20.8m from £24.3m, weighed down by the costs of its relocation to Bermuda earlier this year.
The move to Bermuda cost the insurer a one-off expense of £4m, Kiln said.
Gross written premiums for the first six months of 2007 to end-June rose to £241.3m, up from £230.8m last year.
The combined ratio fell to 85% from 86%.
Edward Creasy, Kiln's chief executive, admitted that market conditions 'are becoming more challenging,' noting that insurance prices in its portfolio have fallen by less than 2% on last year.
He added that he expects full year premiums for 2007 to be below the company's expectations, but still showing a small increase.
He also said the company plans to reduce the capacity managed at Lloyds by 14% to £847m in 2008.