Highway chairman Ross Dunlop said 2004 had started well with the company performing to plan.
While addressing the company AGM, he also said the company believed it had improved as a motor insurance business over the past two years.
“We believe that Highway has improved significantly as a motor insurance business since the new management team was appointed two years ago. We intend to build on this sound foundation.
“We are currently examining ways to add complementary businesses that will allow us to broaden our sphere of operations and provide more predictable earnings that are less reliant on the motor insurance underwriting cycle,” said Dunlop.
He added: “We continue to focus on underwriting profit and although premium rates have softened in a number of sectors during the initial months of 2004, there are no signs of insurers aggressively chasing prices down.”
"We expect this soft landing to continue for the remainder of the year.”
He put the good start down to the development of Highway's Choice products. Dunlop said they were much better equipped to succeed in the more competitive market leading to improved claims frequency, average premium and volumes compared with the same period in 2003.
Dunlop said the company was anticipating two exceptional charges during the 2004 year of account.
It said professional fees and expenses from the aborted merger with Cox Insurance are estimated to reach approximately £0.8m.
In addition a Financial Services Compensation Scheme levy to pay general insurance claims, such as those arising from the dealings of Independent Insurance and Chester Street was expected.
Highway said it believed its share of the £130m market levy would be approximately £1.3m, but that final figures were not yet known.
