Highway, the Lloyd's motor insurer syndicate, will bounce back into profit for the year 1999, says its parent company Ockham.
The company said that trading conditions continue to improve above market expectations as motor premiums continue to steadily rise. The increased profitability will be reflected in the group's results for 2000.
Ockham is in the process of moving Highway, the seventh largest motor insurer in the UK, out of Lloyd's and into the company market in a bid to reduce costs.
The news came as Ockham announced it was to release a statement on March 1 containing extracts from its 1999 results announcement, which will be published in full in April.
Ockham merged with New London Capital at the end of 1998. It says that despite Ockham shareholders having no further economic interest in the underwriting years 1996 to 1999, there remains some accounting data relating to them that have to be included in Ockham's 1999 report and accounts.
The company added that it plans to adopt one-year GAAP accounting for all its motor insurance activities as from January 1, 2000.