Low losses and releases from reserves will boost profits at Lloyd's insurer Hardy, the company said.

Its Syndicate 382 is now expected to make between 8.5% and 13.5% of its capacity for 2001, up from a previous forecast of 6.5% -11.5%.

The increased profitability will come from releases made from reserves for 2000 and prior years.

For 2002, the forecast is for a profit of between 15% and 20% of capacity.

Hardy Underwriting Group owns 74% of capacity on the 2001 underwriting year and about 80% on 2002.

The syndicate's capacity is £50.3m in each year.