LONDON (Bloomberg) ? Amlin Plc, a Lloyd?s of London insurer, plans to raise ?215 million ($381 million) through a share sale to fund a new Bermuda-based reinsurer.

The new company, Amlin Bermuda, will have at least $1 billion of capital from existing cash, new debt financing and the equity sale, London-based Amlin said yesterday. The shares rose to their highest since the insurer was formed in 1998.

?This is an opportune time to make this move in view of the significant rating increases which are expected as a result of the unprecedented windstorm losses incurred in 2005 and 2004,? chief executive Charles Philipps said in a statement.

Insurers plan to take advantage of the higher prices charged for properties and oil installations that were affected by the recent hurricanes by increasing sales next year. Prices are rising on heightened demand as insurers seek to recover an estimated $60 billion of losses related in particular to Hurricane Katrina.

?It?s a very positive move and they will benefit from all the areas seeing the biggest rate increases,? analyst Richard Gradidge of Numis Securities said. ?They will also diversify their revenue stream.?

Amlin Bermuda will provide US and international catastrophe reinsurance and expects gross premium income of $350 million in 2006 and $500 million in 2007, the company said.

Shares of Amlin rose 1.9 percent to 226 pence in London, valuing the company at 905.5 million pounds. The shares have gained 60 percent this year.

Amlin said the new company may be operational by next month with the new fully paid shares being traded in London on November 28. Amlin also plans to increase the amount of business it can insure next year at the Lloyd?s insurance market by 18 percent to ?1 billion.

Amlin will offer current investors seven new shares at 175 pence each for every 22 shares held, a 21 percent discount to the closing share price yesterday, the company said. The share offer, which will raise ?224 million including expenses, is underwritten by Hoare Govett Ltd. The insurer will also raise ?261 million through debt financing, underwritten by Lloyds TSB Group Plc and AMN Amro Holding NV, the company said.

About ?90 million will be funded by Amlin.