Brit Insurance Holdings announced a surge in pretax profits, up to £31m for the first half of the year from a loss of £4.3m for the same period in 2002.
The company also announced substantial premium growth and continuing positive market conditions throughout 2004 and beyond. Gross written premium also increased, up by 66.7% to £666.2m from a figure of £397.3m the previous year.
Basic earnings per share increased to 2.82p for the half year, up from a loss of 1.26p. The board said it had a "strong desire" to resume dividend payments when reserves permitted.
In response to these results, the board said the firm's status as a specialist insurance company, working with a wholly owned syndicate in the Lloyd's Market gave the firm a "flexible trading platform offering high quality security to our policy holders".
Chairman Clive Coates said the group was building real earnings momentum. "We have seen further steady improvement in our combined ratio to its best ever level. We are excited about our future prospects."
Group combined ratio in the first half was 89.2%, down from 90.2% the previous year.
Talks with the group's bankers are currently ongoing over the creation of further debt facilities which the group said would provide flexibility. It added that it is unlikely to extend the group's gearing to more than 30% of net tangible assets.
