Bermuda-based insurer Hiscox reported a 91 percent fall in its annual profit after absorbing 270 million pounds in catastrophe-related claims, and said it was set to benefit from rising reinsurance prices.

London-listed Hiscox made a profit for 2011 of 17.3 million pounds, down from 211.4 million pounds a year earlier, the company said on Monday.

The decline was driven by a surge in claims from a spate of natural disasters, including Japan's Tohoku earthquake, which have made 2011 one of the insurance industry's costliest years on record.

The fact that Hiscox made a profit of 17.3 million pounds for the year is a demonstration of the strength and resilience of our group, Chief Executive Bronek Masojada said in a statement.

Hiscox shares closed at 410 pence on Friday, valuing the company at about 1.6 billion pounds.

(Reporting by Myles Neligan; Editing by Sudip Kar-Gupta)