Quinn Direct insurance has posted a 33 per cent increase in pre-tax profits to €69 million, for the six months to the end of June, compared to the same period last year and said it is confident of maintaining this progress in the second half.

The Irish-owned insurer reported a rise in premium income from €178 million to €245 million during the period. Its underwriting profit rose to €51 million from €36 million.

Quinn Direct's general manager Mr Kevin Lunney said that premium rates had continued to reduce across all business lines.

"The past 18 months have seen us reduce premiums by approximately 30 per cent," he said, adding that further reductions could be in the pipeline if initiatives such as the Personal Injury Assessment board and road safety measures led to a continued fall in claims.

Mr Lunney maintained that there was significant strength in the underwriting performance of the business and attributed this to several factors, including its predominantly direct business model. He said it was a more efficient and cost effective sales model than traditional sales methods. Progress was also being made in the commercial market in the UK, he said and this was a focus for growth.

Mr Lunney claimed that the "continuing efficiencies" would ensure its position as the fastest growing insurer would be maintained. "This will in turn allow us to improve our position in the market and keep us number one for value and customer service," he said.

He said the company had implemented a partnership approach to claims management which helps to reduce its exposure to legal and related costs.

The company reported investment gains of €18 million for the first six months, compared to €16 million last year.