Talbot Underwriting announced gross written premiums of its Syndicate 1183 at Lloyd's were up three percent in 2007.

The speciality insurance group, which is a subsidiary of Bermuda-based Validus Holdings Ltd., announced Syndicate 1183 had written £344 million gross premiums in 2007.

The net earned premiums were £291.9 million, compared to £267.5 in 2006. Meanwhile the Syndicate's profits fell from £83.1 million in 2006 to £75 million in 2007.

Rupert Atkin, chief executive of Talbot, said: "Given the size of the 2005 hurricane losses in the Property, Energy and Treaty markets, we are delighted to close the 2005 year of accounts with a profit of stamp capacity, despite being prominent writers of all three of these classes. We believe this vindicates our stance of having a selective balance of specialist accounts.

"Inevitably, given the strong ratings environment and benign loss activity of the last two years, trading conditions are now deteriorating, in some classes faster than we would wish. However, we believe our portfolio of businesses continues to have an attractive margin and we are diversifying our distribution in order to secure new businesses for the syndicate."

The syndicate also established Accident & Health and Bloodstock & Livestock accounts.

The Benign claims ratio was 42.5 percent, which included £25 million of prior accident year releases.