Ambitious Hardy taps market

HARDY Underwriting is the latest listed Lloyd's of London broker to tap the market, with plans to raise £25m through a placing and open offer. The firm will use the funds to buy 100% control of its main syndicate 382 operation, part of plans to increase its underwriting capacity to £100m by 2003.

It follows several rivals by saying it wants the new funding in order to take advantage of surging premium rates since 11 September. Numis Securities is underwriting an issue of 17.1m new shares at 146 1/4p. The shares added 7 1/2p to 170p.

Hardy said World Trade Centre-related losses were £2m, or 4% of its existing capacity. Profits last year grew 97% to £3.2m. The dividend rises to 6.5p a share from 6p. New chief executive Barbara Merry is concerned about group efficiency and has ordered a cost review.

Hardy said rates in the aviation market have risen by up to 500% since 11 September and this market now presented excellent opportunities. But rate improvements in its marine underwriting operation were patchy, and Bermuda was taking business away from Lloyd's on international property and catastrophe insurance.