Hardy Underwriting Plc, a Lloyd’s of London insurer, is still considering following the trend of British insurers relocated to Bermuda.

Speaking after Hardy announced its profits for 2006 had more than doubled, chief executive Barbara Merry told AFX News that the company was still considering a move.

this month, Kiln Plc became the latest Lloyd’s underwriter to move its base to Bermuda, in an effort to take advantage of the low tax rate as well as the commercial advantages of the territory such as its proximity to the valuable US insurance market.

“The economic argument is very compelling,” she told AFX in a telephone interview. “It’s on the agenda of everybody. But at the moment we are concentrating on our major expansion (with new syndicate 38Twenty) in 2007 as well as a massive investment in our systems. By the time we’ve done that we’ll be in a better position to say something.’

Hardy’s net income rose to $12.1 million ($24 million), or 34.1 pence a share, from $5.4 million , or 15.3 pence a share, in 2005.

Lloyd’s insurers including Brit Insurance Holdings Plc anticipate rates will decline for risks which weren’t affected by the record US storms of 2005.

Pretax profit rose to $16.8 million from $7.5 million in 2005.

The result beat Numis Securities’ expectations of $15.5 million.

“A majority of the profit comes from profits feeding through from the 2004 and 2005 years of account,” explained Ms Merry. “The benefit from 2006 will be felt in 2007.”

Gross written premiums fell to $106.1 million fropm $111.3 million, due to a weak dollar.

Combined ratio — costs and claims expressed as a proportion of premium income — was 76.9 percent, up from 92.7 percent a year before. Any percentage under 100 indicates profitability.

Total underwriting returns rose to $18.4 million from $6.3 million.

Hardy Underwriting increased its final dividend by 21 percent to ten pence from 8.25 pence, and said it will pay an interim dividend from this year.

Merry added that 2007 has begun well — even if insurance prices were falling slightly.

“2007 has started well for us,” she told AFX News. “The softening in the market is coming from a very high base. We’re optimistic.”

She added that recent regulatory changes in Florida, which limit the price of buying insurance, will not affect Hardy.

“We’re not very US-orientated,” she said. ‘The whole thing’s been overcooked a bit.’