Warranty firm Domestic & General (D&G) has revealed that its operating profits fell 23.2% to £7.3m, for the six months to 31 December 2002.
D&G added that its warranty division increased turnover 42.6% to £96.1m.
In addition, its earned income rose by 33.8% to £72.9m, which it claims reflected higher levels of new business written.
A D&G statement said: "Warranty turnover is expected to progress well in the second half, albeit at a lower rate than achieved over the past 18 months, reflecting the impact of accounts won over the past two years.
"As this recent strong growth stabilises and earned income continues to grow we are confident that the prospects for future periods remain strong.
"The claims ratio going forward will reflect the changing profile of our business mix. In the current year, the weighting of earned income relating to new business is increasing and consequently there will be a further small rise in the aggregate claims ratio this year."
