LONDON (Bloomberg) — Bermuda-based Hiscox Ltd., a Lloyd's of London insurer, said premium revenue declined 10 percent in the first quarter of this year as the company withdrew from less profitable underwriting.

Premium income fell to £321.3 million ($625 million), from £358.4 million a year earlier, the company said yesterday in a statement.

"We remain committed to disciplined underwriting throughout our business," said Hiscox. "In global markets and international, we will continue to benefit from healthy rates in catastrophe reinsurance, though rates are softening and we are carefully retreating from poorly priced business."

Hiscox said in March it planned to cut capacity at its main underwriting syndicate by 20 percent this year, as rivals offered increasingly competitive prices and premium volumes fell. The company will focus on its regional divisions in British and European markets to boost growth. Premiums at the two units rose 13 and 29 percent respectively in the quarter.

The insurer has declined 10 percent this year, more than the FTSE All-Share Non-Life Insurance Index which has dropped 6.5 percent.

Chairman Robert Hiscox said: "We have had a good start to the year with relatively small involvement in the many large individual losses which have occurred around the world.

"Despite those losses, market conditions in international and larger business are becoming challenging so we are reducing our exposure to these areas through disciplined underwriting.

"However, we are continuing to drive profitable growth in our more stable specialist regional businesses, which are less prone to extremes of market competition."