Its first-half results show a 20 per cent fall in claims on its continuing business, from pounds 64.2m to pounds 51.4m. With fewer claims and company failures, Trade Indemnity found it unnecessary to make further provisions for underwriting losses on past years.
Although the company is confident that the UK economy is moving out of recession, it has yet to see much increase in business because there has been little improvement in its clients' turnover. Trade Indemnity's gross premium income rose by 2.3 per cent to pounds 71.3m.
Tony Brend, chairman, said: 'Our main aim continues to be to restore profitability by focusing on our ability to give the appropriate levels of credit to our customers during emergence from recession, so that they can concentrate on expanding their businesses safely.' Trade Indemnity does not disclose profits at the half-way stage.
At 55p, the company's shares are almost three times higher than a year ago.
Trade Indemnity said business failures were 19 per cent down in the first half compared with the same period last year, and similar improvements were seen in Australia, New Zealand and Canada.
The group's non-underwriting businesses increased their net operating profits from pounds 90,000 to pounds 280,000.
It is again paying no dividend.Reuse content