Chaucer has reported an 89.3% rise in first half pretax profits, helped by a benign insurance claims season.
First half pretax profits for the first half of the year to end-June rose to £47.9m, up from £25.3m in the first half of 2006.
First half gross written premiums rose to £323.9m, up from £315.6m this time last year.
The combined ratio improved to 84.4%, down from 90.6% this time last year.
The insurer also raised its interim dividend to 1.5 pence per share, up from 1.10 pence per share last year.
Ewan Gilmour, Chaucer's chief executive, said that the outlook for the remainder of the year is 'positive with conditions remaining good'.
