LONDON (Reuters) ? Bermuda-based insurer Lancashire Holdings said yesterday that it did not expect to see any major impact on its business from new legislation passed in Florida last week.

The law extended hurricane reinsurance coverage assumed by the state by up to $16 billion, doubling the capacity of the Florida Hurricane Catastrophe Fund, in a bid to offer cheaper coverage to insurers in the state so that they may pass those savings on to customers.

Analysts and industry players fear this could limit the market for private insurers and reinsurers at a time when prices are riding high.

UK-listed Lancashire said it had not written any property catastrophe reinsurance in the state and that commercial property risks in Florida it had covered ?represented a very small percentage of Lancashire?s total gross written premium in 2006?.

The company said it was optimistic on the trading outlook for 2007.