Lloyd's underwriter Wellington has increased its loss estimate from Hurricane Katrina to $125m, up $50m on its original estimate.
In a statement Wellington said its estimated net losses would come primarily from the energy, direct property and property treaty reinsurance lines of business.
Losses arising from Hurricane Rita were estimated to be $36m.
Wellington has also revised its 2006 business plan, subject to Lloyd's approval, boosting capacity to £760m from £660m. It said the revision is based on the company's "outlook for significantly better rating conditions" following the hurricanes.
