Hardy passes hat for £40m to chase profits

Ships and planes insurer Hardy Underwriting is seeking £40 million from shareholders to take advantage of rising rates across the industry.

The group made record profits of £23 million in 2008, it said today, and reckons it can push this higher if it has the finances available to write more business.

Chairman David Mann says these are "exciting times" for Hardy. "Our business model has served us well through what has been a most turbulent year. An effect of the global financial crisis should be to hasten the return of harder market conditions. Hardy has been preparing for this for over two years," he says.

Aviation and marine insurance costs in particular are rising sharply.

The share placing is bold. New stock equal to 31% of the current share capital will be issued, assuming investors give the go-ahead.

Hardy followed rivals by relocating to Bermuda for tax purposes, though it remains part of Lloyd's of London.

The total dividend is lifted from 11p to 12.1p.