Chaucer Holdings plans to increase its dividend payout by 10% a year from 2005 until 2008, it said.
The Lloyd's underwriter also announced it was on course for a "healthy" underwriting profit in 2004.
It intends to pay a final dividend of 2p per share for 2004, a rise of 48% on 2003, resulting in a total payout for the year of 2.75p, up from 2p.
Chaucer also predicted that its overall underwriting interests for the 2005 year would be around £372m, a rise of 17% on 2004.
