Lancashire, the London-listed Bermuda-registered speciality insurer, said it was surprised by the drop in demand for Gulf of Mexico hurricane-related insurance this year as it reported interim profits up by 9 per cent to $148.2m (£90.5m).

Analysts said the figures were ahead of expectations, but noted they included a strong second-quarter reserves release of $35.3m that, along with benign losses in the period, contributed to the performance.