Two London-listed insurers today said that recent severe weather would strip profits by up to £60 million.

Amlin, based in London, predicted that hurricanes Charley, Frances, Ivan and Jeanne, as well as typhoons in Japan, would reduce annual profits by around £30 million.

Bermuda-based Catlin also said the impact of the four hurricanes that wreaked havoc across the Caribbean and United States would hit pre-tax profits by around $50 million (£28 million).

However, both said this may allow them to raise the rates they charge in the future.

They are the latest in a string of firms to report the impact of last month's hurricanes, as companies claim for extensive damage to their businesses.

Amlin, the Lloyd's insurer, said that 2004 had been an "exceptional" year for hurricanes and that evaluation of the impact was at an early stage.

But it added that losses would have an impact on the behaviour of insurance and reinsurance companies during the rest of 2004 and 2005, reducing pressure

for rate reductions and even generating rate rises in some areas.

Catlin also said the losses would have a "positive effect" on rate levels. Some of the worst hurricanes in decades killed more than 1,500 people and left thousands of people homeless.

Earlier this week, London-based insurer Hiscox estimated the hurricanes could reduce operating profits for the financial year by £25 million.

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