Lloyd's insurer Kiln has reported record profits before tax of £34.3m, an increase of 24% on the same period last year (2004: £27.6 million) on gross written premiums of £195.1m (2004: £162.4m).

Its combined ratio for the period was 83%, compared with 80% in the year-earlier period.

Kiln said its costs from Hurricane Katrina are expected to be £30-35m but that it expects Katrina to significantly improve the favourable underwriting environment.

Chief executive Edward Creasy, said: "Hurricane Katrina has brought devastation to the lives of many and the human cost is inestimable. The global insurance industry will be affected financially by Katrina; we believe, however, that it will result in a rise in prices overall and will generate good opportunities for Kiln as a specialist underwriter."

Topics