Bermuda-based Hardy Underwriting took a £42.1 million loss in 2011, citing an “unprecedented series of extreme natural catastrophe events” last year.

This is compared to generating £10 million in profits in 2010.

“2010 and 2011 have been challenging years for Hardy and we have learnt a great deal from the experience,” said David Mann, chairman of Hardy. “As a consequence, we believe that the underwriting portfolio is in fundamentally better shape than it has ever been. The strategic review is proceeding and we remain focused on achieving the best possible outcome for all stakeholders.”

The company’s combined ratio for 2011 stood at 120.9 percent, compared to 94.7 percent the year prior.

Hardy wrote less business in 2011, reporting £268.4 million in gross premium written compared to £279.4 million in 2010.

“The board has concluded that, in the light of the impact of the catastrophe losses on the Group’s financial resources and of the ongoing strategic review, it would not be appropriate to pay a final dividend,” said Mr Mann.

“Since 2007, Hardy has focused its catastrophe exposed property treaty business on international risks, which, as we have said before, makes our account atypical for Lloyd’s,” said the company in their financial report. “As a result, Hardy’s exposure to these international losses is not unexpected, except as regards the frequency of the loss events. The scale of these events has, inevitably, had a major impact on the performance of Hardy in 2011.”