LONDON (Bloomberg) — Kiln Plc, a Lloyd's of London insurer, said premium income will be strong this year and next as it increases underwriting and prices."As long as 2006 continues to be relatively benign in terms of claims experience, we are looking forward to a strong financial performance for the year," said chief executive officer Edward Creasy in a statement yesterday. "Market conditions for 2007 continue to look as promising as we predicted when we announced plans to increase our capacity earlier this year."

Kiln has said it plans to increase the amount of business it can insure next year to as much as $1 billion ($1.95 million), up 25 percent from this year, to take advantage of higher prices following a record hurricane season in 2005. This year's benign hurricane season and lack of major catastrophes lowered Kiln's gross incurred loss ratio to 14 percent in the first three quarters from 58 percent a year earlier, the company said.

The company's gross premium income through September 30 was $334.9 million, up 25 percent from a year earlier, Kiln said.

Kiln shares rose 1.6 percent to 110.25 pence at 3:15 p.m. in London, giving the company a market value of $321 million.