The Moody's credit rating agency has forecast an underwriting profit of around GBP1.5 billion for the Lloyd's of London insurance market this year.

Reuters reports Moody’s findings, which also suggest that a profit margin of around 10% is likely on the GBP14.8 billion in policies likely to be written by the market’s members in 2006.

Moody’s does warn that its predictions could yet be affected by another season of extreme weather akin to the hurricanes seen in the US in 2005. However the agency adds that most insurers have adjusted their risk profiles in the wake of last year’s natural disasters, meaning a more profitable year for the sector as a whole is probable, Reuters reports.