LONDON (Bloomberg) — Hardy Underwriting Bermuda Ltd. said premium income rose 42 percent at the beginning of 2009 as rates increased.

Premium income before deductions for commission at Janauary 1, when many companies renew their policies, was £69.1 million ($98 million) compared with £48.8 million a year earlier, the London-based company said in a statement. Hardy's full- year trading results "will be ahead of expectations", it said.

Insurers' balance sheets have been hurt by the financial crisis and low interest rates around the world, eroding the value of investments. It has also suffered from the most costly hurricane season since 2005. This has caused premium rates to increase 5.2 percent, which was "earlier than was anticipated", the insurer said.

Gross written premiums for the year will be more than £170 million and pretax profits will be at least £22 million, Hardy said. Losses from hurricanes Gustav and Ike, which hit the Gulf coast in September were estimated at $17.6 million, less than the originally forecast $23 million, according to the insurer.