LONDON (Bloomberg) — Bermuda-based Hiscox Ltd., the second-biggest Lloyd's of London insurer, posted a better-than-expected 2009 profit after a benign U.S. hurricane season and higher investment returns.

Net income rose to £280.5 million ($424 million), from £70.8 million in 2008, the insurer said yesterday in a statement. That beat the £253 million median estimate of 10 analysts surveyed by Bloomberg.

"The market outlook for 2010 is positive, though with lower expected investment returns and the easing of rates it will probably not be as good a vintage as 2009," chief executive officer Bronek Masojada said in the statement.

Hiscox, which insures risks from artwork to oil rigs, has increased reinsurance to a third of its total book as rates climbed to a record in 2009. Lloyd's rivals Brit Insurance Holdings NV and Catlin Group Ltd. also reported higher earnings last year after a benign hurricane season in the Gulf of Mexico lowered insurance claims.

Hiscox raised its final divided 18 percent to 15 pence a share.