The Lloyd's of London insurer, Hardy Underwriting Group plc, said that its profits fell by 10% in 2004 to £9m.
In 2003 the specialist insurer posted after tax profits of £10m.
Peter Hardy, chairman of Hardy Underwriting, said: “Notwithstanding the difficulties experienced by the insurance market in 2004, of which we have borne our share, our underlying business is strong and has produced some good results. We are particularly pleased at the above average return achieved on the closure of syndicate 382's 2002 year of account."During 2004, gross written premium increased by 47% to £87.3m and the combined ratio for syndicate 382 of 93.0%, compared to 81.2% in 2003.
Hardy added: “Going forward, we all now see that the market is turning downwards. Fortunately, in respect of both our core business and our new niche classes (which will represent 40% of our portfolio for 2005), the margins are still adequate and we remain confident that there are profits to be made."
Barbara Merry, chief executive, added: “We believe that we are now a stronger, more resilient business. Our underlying business is of good quality, reflecting the very characteristics of Hardy itself as a small niche player of quality and integrity.”
