Lloyd's insurer SVB has achieved record interim profits in the six months to June 2005 of £27.7m, up from a loss of £120.1m last year.
Underwriting profit from SVB's continuing business rose to £43.3m from £39.6m, and the combined ratio was 71.9%, compared to 77%.
Rates had been expected to soften further in the second half, but the impact of Hurricane Katrina means rates are now set to increase, SVB said.
"SVB's mix of business means that it will benefit from rate hardening in the property segment," the company said.
SVB reduced its premium capacity by 13% to £437m in 2005. It had originally planned to reduce premium capacity by around 7% in 2006, but said it will now review this due to the changing market conditions.
