Omega Insurance, whose holding company is based in Bermuda, remained upbeat about prospects for the year ahead on Friday and said it was "extremely pleased" with the trading position of the company at this stage of 2007.

"Rates, terms and conditions in our key areas of business remain at attractive levels affording good margins. Income levels are currently in line with expectations," said chairman Walter Fiederowicz in his annual general meeting statement.

The pricing of the US catastrophe reinsurance business is at the levels it achieved at the start of 2006, he added, and the firm is not experiencing any material reduction in income from Florida.

In addition, the development of Syndicate 958's offshore energy account is proving "very satisfactory" with good rates achieved on exposures.

"With operations in Bermuda, Cologne and London and our newly established US surplus lines insurance company, we believe the Group is ideally positioned to take advantage of attractive market opportunities," said Fiederowicz.

"We remain positive on the outlook for the financial performance of the group in 2007 and are confident and enthusiastic about the prospects and potential beyond."