LONDON (Bloomberg) — Bermuda-based Kiln Plc, a Lloyd's of London insurer, is bracing for hurricanes this year after wind-related claims crippled profit two years ago.

A relatively calm season allowed the company to increase net income in 2006 by seven times to $86.7 million on lower claims, the company said in March.

"The insurance and reinsurance world as a whole was very fortunate in terms of what happened in the hurricane season last year," chief executive officer Edward Creasy said in an interview in Hong Kong on Wednesday. "I don't think for a moment that we can expect to have that kind of luck for 2007 and we have adjusted our portfolio accordingly," he said.

Profit in the Bermuda and Lloyd's insurance markets was eroded in 2005 when hurricane's Katrina, Wilma and Rita contributed to the worst-ever season for claims.

Kiln may use its new Bermuda base to expand in the US, Creasy said. The company joined Lloyd's insurers including Hiscox Ltd. in moving to Bermuda, where taxes and regulations are lower than in the UK.

"It is not just for lower taxes," he said. "We are looking to expand in the US as well and Bermuda is where we can do that from, where the capital, where the people are."