Amlin's two Lloyd's managing agencies, Amlin Underwriting and Angerstein Underwriting, have produced a combined profit of £14.8m for the 1997 year of account.

This is equivalent to 2.3% of the group's total managed capacity and is at the high end of forecasts.

But the mid-point of the syndicates' 1998 year of account indicates a loss of £27.6m, equal to 4.3% of capacity and a small deterioration from the previous forecast loss of 3.4% of capacity.

Amlin says the 1998 forecasts reflect difficult conditions for most classes of insurance and reinsurance caused by inadequate rates and an increased level of loss experience.

The company adds that there has also been a deterioration in the results of casualty lines, particularly medical malpractice where fourth quarter notifications indicated a strengthening of reserves was needed.

The results of syndicate 2001 for the two years were "significantly influenced" by poor results from former sub-syndicate 919 and extremely poor conditions in the motor market, said Amlin.

However, the 1999 year is expected to show an improvement on 1998. Amlin plc's share of the forecast loss in the 1998 year is £6.5m.