Amlin Bermuda's gross premiums written rose by 16 percent in the first four months of this year, the unit's London-based parent company stated yesterday.

Higher rates, a healthy renewal ratio and some new business all helped the Island unit write $194.7 million of gross premiums, compared to $167.2 million in the January to April period last year.

Amlin Plc, the biggest insurer in the Lloyd's of London insurance market, said in its interim management statement, released yesterday, that total revenue rose 39 percent in the first third of 2009 because of the falling value of the pound against the dollar and an increase in new business.

The group's total gross written premium in the first four months was £729.7 million , compared to £524.2 million in the prior year period. Amlin's Syndicate 2001 increased its cessions to Amlin Bermuda in the first four months with £29.4 million, compared to £21.4 million last year. The 2009 whole account quota share to Amlin Bermuda rose to 17.5 percent, up from 12.5 percent.

"Given the continued upward trend in insurance and reinsurance pricing and some signs of an easing of the world economic crisis of the past year, the outlook for the group is becoming increasingly positive," Amlin said in the statement.

Amlin also said the UK Budget in April signalled a taxation changes that could be beneficial.

All foreign dividends will be exempt from UK tax from July 1, 2009.

"Once the legislation is substantially enacted, this will enable the deferred tax provision of £16.1 million held at December 31, 2008 in respect of UK tax payable on potential future Amlin Bermuda dividends to be released,"Amlin's statement said. "Over time, this exemption will lead to a reduction in the ongoing effective tax rate."

The rate rises had been most notable in the catastrophe reinsurance business, which is written in both Bermuda and London.

"The US catastrophe account has had average rate increases of between seven percent and 10 percent, with the largest increases in zones affected by 2008 hurricane activity," the statement said.

"The rate of increase in the international catastrophe book is slower, but improvements to rates have been achieved. Notably, the recent Japanese catastrophe reinsurance renewals had an average eight percent increase."