LONDON (Bloomberg) ? Hardy Underwriting Plc, a Lloyd's of London insurer, said 2005 profit fell 45 percent because of claims related to hurricanes in the US.

Net income declined to ?5.4 million ($9.4 million), or 15.3 pence a share, from ?9.8 million, or 27.9 pence a share, in the year-earlier period, the London-based company said yesterday.

"Going forward, we see more challenging times and expect to focus on our core classes and to continue to look for new niches," said chairman David Mann in the statement.

Hardy, which insures risks ranging from helicopters to fishing boats, said underwriting will be "competitive" this year after about $8 billion of capital was raised by new companies operating in the Bermudian market. Reinsurers have moved to Bermuda to benefit from looser regulation than in Europe and the US and a zero percent corporation tax.

Hardy had net losses relating to Hurricanes Katrina, Rita and Wilma in the US of ?11.9 million.

The insurer maintained its final dividend at 8.25 pence a share.