UK-based Highway Insurance Holdings has reported an GBP11.8 million profit before tax for the six months ended June 30, 2007, a significant increase from the GBP7.5 million recorded in June 2006.

<p>The group also revealed an investment return of 3.9% for H1 2007, which was 2.5% for the same period in 2006. The company recorded a 10% increase in gross written premiums, which increased from GBP119.3 in H1 2006 to GBP131.2 million in H1 2007. Meanwhile, earnings per share increased to GBP0.4 from GBP0.3 in 2006.<br /><br />Commenting on the results, Richard Gamble, chairman of Highway Insurance Holdings, said: A strong investment performance in the first six months has resulted in an interim result that is well ahead of 2006.<br /><br />Underwriting conditions remained challenging during the six months to June 30, 2007 and the widely anticipated market recovery appears to be finally under way. We are now seeing strong evidence that premium rate increases are being achieved and the business is well positioned to take advantage of a prolonged upturn as this develops.</p>