Insurer Amlin says prices up in January

LONDON (Reuters) - Lloyds's of London insurer Amlin on Monday said insurance prices were higher in January and should rise further, underpinned by U.S. hurricanes and insurers' own capital constraints.

Amlin said insurance prices were up by 4 percent overall this month, when many customers renew their cover for the year, compared with January 2007.

The company's premium income so far this month stands at 389 million pounds, a 30.6 percent increase on the same period last year, it said.

"We are through the bottom of the insurance cycle with strong prospects for hardening rates across our business," Amlin Chief Executive Charles Philipps said.

"We have a strong balance sheet and we are in an excellent position to take advantage of opportunities to grow the group over this next phase of the cycle."

Amlin also reported an investment return of 0.2 percent in the final three months of 2008, with a 26.5 percent loss on its equity portfolio largely offsetting a 3.2 percent gain on bonds and a 3.2 percent gain on cash.

(Reporting by Myles Neligan; Editing by Erica Billingham)