UPDATE 1-Brit Insurance expects to meet market expectations

(Adds detail, analyst forecasts, shares)

LONDON, May 15 (Reuters) - Brit Insurance (BRE.L: Quote, Profile, Research) said on Thursday it expected to meet market expectations in 2008, despite rising competition and investment market turbulence. Premium rates have been broadly in line with expectations, with rates down 2.2 percent on business it has renewed during the first four months of the year, Brit said in a trading statement.

The company said its gross written premiums for the four months to the end of April were up 5.8 percent at 528.2 million pounds ($1.03 billion).

Earlier on Thursday, rival Catlin Group (CGL.L: Quote, Profile, Research) said its gross written premiums for the first quarter were flat on the previous year, but that rates had fallen by 5 percent across all its classes of business.

Prices have fallen most heavily in catastrophe-exposed business, which Brit has moved away from in recent years.

Brit also sought to reassure the market over its subprime-related claims, which have weighed heavily on its shares in the past nine months, saying they were developing in line with expectations, while overall claims were in line with its business plan.

"At this early stage of the year we are confident of meeting market expectations for 2008," said the company's CEO Dane Douetil in the statement.

Analysts expect Brit to make pretax profit of 161.8 million pounds in 2008, according to a consensus forecast of 10 analysts provided by Reuters Estimates.

Brit shares were up 1.5 percent at 223 pence at 1107 GMT, well ahead of rivals such as Amlin (AML.L: Quote, Profile, Research) and Hiscox (HSX.L: Quote, Profile, Research), which were trading in negative territory.

The company, which had previously warned it could move its base overseas, said its preference was to remain domiciled in the UK but that it was evaluating whether or not to move its headquarters. (Reporting by Simon Challis, editing by Will Waterman)