Troubled insurer Trenwick boosted its reserves by $107m (£65.3m) to cover losses in the fourth quarter of 2002.

The changes affect Trenwick International, which operates in the UK, and its US business, but does not significantly change its Lloyd's operations, the Bermuda-based company said.

All the company's operations, other than its North American reinsurance and Lloyd's businesses, are in run-off.

The charges include $20m (£12m) for asbestos exposures.

The company can now afford to keep making pay-outs for 13 years, at the levels experienced over the last three years.

W Marston Becker, acting chairman and acting chief executive, said: "The completion of Trenwick's reserve study and its significant increase in loss reserves for the fourth quarter of 2002 demonstrates Trenwick's continued commitment to ensuring that its balance sheet appropriately reflects ongoing actuarial developments within the company and the industryy."