Motor insurer sees combined operating ratio climb above 100%
Highway has posted 2007 results showing a 27% rise in profit before tax to 24.3m pounds.
However the motor insurer has seen its combined operating ratio (COR) climb to 101.4%, compared to 98.9% in 2006. It said that exceptional claims following the summer’s flooding has pushed its COR up by 1.8%.
Net assets were up 11% to £103m with a proposed full year dividend increase of 0.25 pence per share, to 5.75 pence. Investment funds increased by 5.5% to £439m.
The insurer had a GWP of £250.6m in 2007, compared to £241.3m in 2006. Premium volumes increased by 4% in the period, with signs of a sustainable market upturn, it claimed.
Highway chairman Richard Gamble said: “This is a strong result at the bottom of the underwriting cycle underpinned by a robust investment performance in turbulent markets. The second half of 2007 saw private motor premium rate increases gathering momentum and this trend is continuing in early 2008, albeit in an environment where price comparison websites are generating substantial growth. Highway is prudently reserved and is well positioned to increase underwriting volumes as rates continue to improve.”
