Kiln has said it plans to lift capacity by 25% in 2007 to about £1bn as it predicted "excellent underwriting opportunities" next year.
Kiln said it plans to raise the capacity of its flagship Syndicate 510 by 17.6% and capacity at its catastrophe Syndicate 557 is planned to more than double.
The group's director of underwriting Robert Chase, said: "We are seeing strong rating conditions and increased discipline in the market.
Chase added that the planned increase reflected Kiln's belief that 2007 would offer "excellent underwriting opportunities" provided that, as expected, it is a year of moderate catastrophe activity.