Wellington Underwriting's shares took a sharp upturn as the insurer issued improved forecasts for its Lloyd's business.
Syndicate 2020's forecast for the 2001 year of account improved to a loss of between 16% and 23% of capacity from a previously estimated loss of 20% to 30% of capacity.
The improvement resulted from strong premium growth late last year and low claims, the company said.
WTC losses had "developed within expected limits" but the company said it was unlikely to need another cash call before the year of account closed.
Early estimates for the 2002 year of account put profits at between 7.5% and 15% of capacity, which was increased to £624.4m from £499.4m in 2001.
Wellington said the gross incurred loss at 31 December was the lowest proportion of ultimate premium, at 12.16%, than any year since 1993 at the same stage of development.
Syndicate 2020 delivered a profit of 3.6% after expenses for the 2000 year of account, when Wellington's participation amounted to 45.9% of capacity.
This was in line with previous forecasts.
The stock rose 5.5p this morning, or 6.04% making it one of the best performing mid-cap shares.
