Specialist Lloyd's insurer Advent Capital (Holdings) Plc reported a lower pre-tax profit on higher single-risk property losses and warned that competitive conditions in its principal lines of businesses are affecting rates and premium signings.

The company said pretax profit for the six months to June 30 was £1.6 million ($3.2m) compared with £6.7 million a year ago, while gross written premiums excluding the reinsurance to close premium, increased by 25 percent to £111.7 million from £89.3 million.

Advent's first-half underwriting profit stood at £894,000 compared with 4.42 million, while the combined ratio rose to 99 percent from 89.6 percent, while return on equity for the period fell to 1.1 percent from 3.9 percent.

The company said underwriting profit for the first half was adversely impacted by higher frequency of single risk property losses, net of reinsurance recoveries and reinstatement premiums of 9.8 million pounds.

Advent said it continues to maintain its focus on underwriting profitability while remaining alert to the changing business environment that its Lloyd's and Bermuda operations may have to contend with.