Bermuda-based Advent Re contributed £4.9 million ($9.6 million) in full-year 2007 profits to British parent company Advent Capital, whose net income rose 10 percent to £25.2 million.

Advent's reinsurance arm also produced £6 million of Advent Capital's £96 million of net premiums, which was up 17.5 percent on 2006.

AIM-quoted Advent Capital, which owns the £135 million-capacity underwriting syndicate 780 of Lloyd's, said it had taken steps to avoid volatility.

Earnings rose 9.3 per cent to 4.87p a share and the board, chaired by Lloyd's veteran Brian Caudle, is recommending a maiden dividend of 1.25p a share.

Pointing out that Advent slightly exceeded its targeted 20 percent return on equity, chief operating officer Keith Thompson said the company, which lost £74 million in 2005 largely as a result of reinsurance claims on US hurricanes Katrina, Wilma and Rita, has "redesigned its portfolio" of risks. He said Advent was increasing the proportion of direct property insurance and its energy business, so that the two classes of business together accounted for 45 percent of last year's income, against only 14 percent at the beginning of the decade.

"We have given up some upside," Thompson said. He said Advent's 2007 profit "would have been greater with the old mix", but the change had reduced the risk of catastrophic losses.

He said last month's policy renewals showed a continuing slide in premiums of an average six percent and added that "there is a lot of competition and a lot of pressure on rates in all classes of business".