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Motor insurer Sabre Insurance reported a drop in gross premiums for the six months to 30 June, to £101.2m from £108.8m last year, but claims inflation is still a headache.
Pre-tax profit was down to £30.5m compared to £32.5m in the same period last year, while its interim dividend per share dropped from 7.2p to 4.7p.
Chief executive Geoff Carter said he was pleased to have delivered half year results in line with expectations.
He said: 'The financial and operational performance of Sabre demonstrates the resilience of the business model and the merit in our strategy, despite the competitive market conditions.
'The market remains competitive with the dynamics observed in the earlier part of the year continuing through to the end of June.
'Whilst it is difficult to predict accurately when we might see a turn in the cycle, we have continued with our strategy of increasing premiums to reflect claims inflation, which we believe is running at around 7-8% a year.'
The company said it is on track to deliver existing full year guidance of a combined ratio slightly better than its long-term target of mid-70%'s.