London-based insurer Chaucer Holdings Plc has decided to remain a UK company — for now — after looking at whether it should change domicile.

The company announced earlier this year that it was undertaking a review to determine whether a move could be justified.

Several of Chaucer's competitors on the Lloyd's market, including Catlin, Hiscox, Hardy and Canopius, have moved from the UK to Bermuda in recent years.

In its interim results statement released yesterday, chief executive officer Robert Stuchbery said: "The board has taken the decision to remain domiciled in the UK for the present, having completed an extensive review of our strategic options.

"In particular, the group is expected to obtain significant cash flow benefit from the recent introduction of equalisation reserves and the UK Government's decision to reduce the rate of corporation tax. The review included advice from our legal and tax advisers."

Chaucer posted a 58 percent drop in first-half profit as investment returns fell and the company faced claims related to the earthquake in Chile and the Deepwater Horizon oil spill.

Pretax profit declined to £7 million ($10.9 million) from £17 million pounds a year earlier, the company said.

The company left its estimates for losses related to the earthquake, the Gulf of Mexico oil spill and European winter storm Xynthia unchanged. It expects losses related to Deepwater Horizon of about $25 million and a net loss from the earthquake in Chile and Xynthia of 25 million pounds. It also had losses of 10.7 million pounds related to riots in Bangkok in May.

"It has been an exceptional period for natural and man- made catastrophes," Mr. Stuchbery said in the statement. "We are taking advantage of the positive market conditions arising from these events, particularly within the energy market, where we are already seeing good rate increases."