Highway profits up 27%
Motor insurer Highway have reported their results for 2007, with profits rising by 27% to £24.3 million.
However, the insurer’s combined ratio (COR) was also up, rising to 101.4% compared to 98.9% the previous year. Highway blamed 1.8% of the rise on exceptional claims due to the UK’s summer floods.
Net assets rose 11% to £103 million, leading to a proposed full year dividend of 5.75 pence per share, an increase of 0.25 pence. Investment funds were up to £439 million, an increase of 5.5%.
GWP for 2007 was £250.6 million, compared to £241.3 million in 2006. Premium volumes rose 4% for the year, and showed signs of a sustainable upturn.
Richard Gamble, Highway’s chairman, said of the results: “This is a strong result at the bottom of the underwriting cycle underpinned by a robust investment performance in turbulent markets.
“The second half of 2007 saw private motor premium rate increases gathering momentum and this trend is continuing in early 2008, albeit in an environment where price comparison websites are generating substantial growth.
“Highway is prudently reserved and is well positioned to increase underwriting volumes as rates continue to improve.”
Category: Car Insurance News, Companies News
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