Amlin Bermuda's contribution helped UK-based parent company Amlin post full-year profits of $881.3 million for 2007.

The Island-based reinsurance arm of the Lloyd's of London insurer wrote $465.8 million of gross premium last year, compared to $411.2 million in 2006.

Amlin Bermuda saw a reduction of seven percent in its annual renewal rate, with renewal retention rate of 76 percent.

A statement from the company said growth had been constrained as primary carriers had chosen to maintain Amlin's level of risk at price levels consistent with the previous year.

Amlin Bermuda achieved a combined ratio of 46 percent, a slight improvement on the 2006 figure of 48 percent.

"This reflects the low level of catastrophe losses and limited development on claims in the year, resulting in a claims ratio of 34 percent," read a statement from the company.

Overall, Amlin PLC posted a 29.9-percent increase in profit and recorded a combined ratio of 63percent for 2007, compared with 72 percent a year previously.

Charles Phillips, chief executive officer of Amlin, described the results as "exceptional".

He said the combination of strong investment returns and a lack of large losses had boosted the company's results.

Mr. Phillips said the UK floods in June and July, Windstorm Kyrill in northern Europe in January, and Californian bushfires, had cost the company a net total of around $59.4 million.

Investment return increased 36 percent to $311.8 million from $228.5 million in 2006. And Amlin achieved a record return on equity of 37.8 percent, compared to 34 percent in 2006.

"Our average return on equity over the past five years shows that this is not a flash in the pan," Mr. Phillips said. "However underwriting returns have peaked in the short term."