Provident Financial Group posted results showing profit before tax up 5.9% to £169.6m for 2001.
Its preliminary results for last year showed turnover was up 14% and the number of customers was up 9%.
Provident Financial is listed 24th in the November 2001 Insurance Times Top 50 general insurance groups.
Its insurance division comprises motor specialist operations Provident Insurance and Colonnade Insurance Brokers.
Group chairman John van Kuffeler picked out the company¹s motor insurance division as having had a record year but he warned that a market downturn was possible.
Profit before tax from motor increased by 14% to £36.6m, compared to £32m in 2000.
The number of motor policyholders increased by 8.5% to 855,000 and gross written premiums increased by 16% to £255m.
He said: "There are now signs of a change in pricing conditions in the market.
"Our premium rates increased by 6% in 2001 compared to 17% in 2000 and, in a more competitive market, premium rates increased only slightly in the 0second half of the year.
"Although the outlook is uncertain, we believe the motor insurance market is at the top of the cycle and, with annual claims inflation running at about 9%, we continue to caution that a downturn in margins may begin in 2002."
Provident was forced to close a non-profitable South African operation, incurring a loss of £3.6m. The operation had lost £800,000 in 2000.
The company has agreed to top up its pension scheme with extra contributions for the next five years.
