LONDON—Kiln Ltd. is to reduce capacity at Lloyd’s of London and move forward with plans to establish a presence in the United States, the company said in its half year results.

The insurer, which moved its headquarters to Hamilton, Bermuda in May this year, said that it intends to reduce the capacity it manages at Lloyd’s by 14% to £847 million ($1.70 billion) for 2008 to reflect its policy of underwriting for profit and not volume.

Kiln’s Chief Executive Officer Edward Creasy said the company had withdrawn from some business due to greater competition. As a result Kiln’s gross premium in the first half, 4.5% higher than for the same period last year at £241.3 million ($484.6 million), was less than originally forecast.

Mr. Creasy, who described 2007 as a transitional year in which Kiln has moved from a Lloyd’s only insurer to an international insurance and reinsurance group, said that the company continues to seek opportunities. The company recently opened offices in Belgium, Hong Kong and Singapore and has made progress with plans to establish a presence in the United States, Mr. Creasy said.

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by Stuart Collins

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