Goshawk Insurance delayed the announcement of its annual results last week because auditors insisted that it strengthened its reserves.
On Wednesday Goshawk reported a pre-tax profit of £10.1m, compared with a loss of £7.4m the previous year.
Chief executive Chris Fagan said Goshawk had increased its reserves for contingent cost insurance by £3.5m after its auditors demanded improved contingency.
Goshawk also increased its reserves against reinsurance debtors by an extra £1.9m to £4.2m, reflecting the decline in credit ratings of some of its reinsurers.
It is understood that an increase in its loan facilities is expected to be sufficient for the group's growth.
