Wellington Underwriting has revised its profits forecasts for 1998 – the year before it merged its three syndicates into a single underwriting vehicle.

The Lloyd's insurer said the forecasts are unaffected by its thwarted bid for fellow Lloyd's insurer Limit, which it lost to QBE.

In the 1998 year of account it had three syndicates: 51, a non-marine and property and casualty syndicate which had an underwriting capacity of £208m, and two marine and non-marine composites 672 (£262m) and 1028 (£80m).

The insurer's best performing syndicate was 1028, which had its previous forecast return on capacity increased from 0 to +5, to between +3 and +6.

Julian Cusack, Wellington Underwriting's finance director, said 1028's strong performance was a result of its success in focusing on more profitable lines.

Forecast returns for 51, and 672, were however reduced from - 1.5 to +3.5, to -1 to +2.

The three syndicates were merged into a single syndicate, 2020, for the 1999 year of account.

Wellington Underwriting said it is planning to increase the capacity of 2020 by £70m to £500m in 2001.

Cusack said the insurer's forecast for the 1999 year of account remains unchanged at +1 to +6.