The Highway group lost £2.6m in 2002, compared to a profit of £10.5m in 2001, after restructuring its business and leaving Lloyd's.
Excluding exceptional items and tax, it made £17.7m. But exceptional charges of £13.2m and a £4m loss on discontinued operations brought it down to a profit of just £263,000 from ordinary activities before tax.
The motor insurer incurred reorganisation costs of £1.2m and a £12.1m write-off on an ill-fated investment in New Millennium Techno-logies (NMT), a loss-making software business.
Highway ditched NMT in November after an investment made in 1999 by Highway's former incarnation as Ockham.
Its gross written premiums fell to £134m from £237m, but this was countered by a substantial reduction in the use of reinsurance, so net premiums written were £122m for 2002 compared to £142m the year before.
Avoiding equities helped to keep investment income strong at £12.5m, compared to £18.8m in 2001.
Highway's continuing operations achieved a combined operating ratio of 93.7%, an improvement on the previous year's 102.9%.
Earnings per share before exceptional items was 6.9p, compared to 3.4p in 2001.
Managing director Andrew Gibson said he expected 2003 to be a tougher year, with margins under pressure, but the continuing business was strong.
He said: "Private car comprehensive rates are flat but there are other areas doing well," he said.
"We see our margins being eroded slightly, but we have a strategy and business plan to grow organically."
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
