Motor insurer Highway Insurance has reported a drop in full-year pretax profit in what it termed as 'tough market conditions,' but said it sees clear signs of an emerging upturn in the motor insurance markets during 2007.
Pretax profit fell to £19.1m from £27.3m a year earlier while gross written premiums fell to £241.3m from £253.7m last year. The company operating ratio rose to 98.9% compared with 96.4% in 2005.
"Whilst conditions in the motor insurance markets remain challenging, there are now some clear signs that the upturn is emerging. Highway has maintained a consistent reserving policy throughout the cycle and is well positioned to increase underwriting volumes as the cycle turns," executive chairman Richard Gamble said in a statement.
The company said it is optimistic that it will see increased returns in 2007 as its retail business now has the potential to make a substantial contribution, and confirmed that Andrew Gibson will assume the role of chief executive from April 1.
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