After-the-event insurer, Elite Insurance is set to expand into the reinsurance sector after its parent company, LitComp, considerably reduced losses.
Elite, which was bought by LitComp in November 2005 as part of the acquisition of Fairmont, said it was "actively pursuing" the introduction of a reinsurance programme.
Douglas Smith, non-executive chairman of LitComp, said: "Elite has a number of very substantial policies which it could potentially write, provided that it is able to facultatively reinsure these risks. Such reinsurance is being actively pursued."
He added: "Elite Insurance has made significant progress in the period under review: gross premium income has increased to £1.3m compared to £169,000 for the six months ended 31 March 2006."
The proposed expansion comes after LitComp reduced losses suffered in the six months ended 31 March 2006, following its move to the Alternative Investment Market in March.
Results for the six months to 30 September 2006 have seen net losses fall to £53,000, compared to £434,000 for the six months ended 31 March 2006.
The group's operating profit before non-recurring items was £180,000, which increased from £142,000 for the same period in 2005.