Hardy Underwriting Bermuda Limited announced yesterday that it began underwriting a book of Japanese mutual co-operative business earlier this month.

The specialist Lloyd's underwriting business said the estimated gross annual income, after commissions, from the business would be approximately $17.6 million for 2009.

The business — called "kyoshi" — is being underwritten on a reinsurance basis. The deal was effective as of September 1.

"The business, which predominantly consists of household contents with some personal accident, will be developed as part of a partnership with Fintech Global Incorporated, which has extensive knowledge and experience of the relevant markets," said a press release from Hardy.

"This portfolio is complimentary to the existing book of Japanese business written by Hardy's property team, led by David Carson. David has developed a Japanese account for over 18 years in the Lloyd's marked and is an established leader."

Hardy announced it was redomiciling to Bermuda in late 2007. Hardy is a $200 million capitalised insurance and reinsurance business and is listed on the London stock exchange.

The company's chief executive officer Barbara Merry said of the announcement yesterday: "The establishment of the relationship with Fintech is an exciting step for Hardy and we look forward to developing over the coming years."

Ms Merry was in Monte Carlo yesterday and could not be contacted for further comment.