Promina says it will raise up to $300 million for “growth projects” after a dream 2003 debut profit of $298 million –  $110 million higher than predicted.

The strong result silenced critics of the new Australian insurer, which produced a 15.5% increase in premium income to almost $3 billion.

Promina MD Mike Wilkins denied rumours of a share buyback later in the year. He says revenue raising strategies are still being worked on, but the funds will be used to grow the business and allow the company to consider more acquisitions.

He attributes some of the group’s fortune to a limited number of claims, relatively benign weather conditions and a recovery in equity markets.

“We’re very confident about the outlook and, barring any major catastrophes or natural disasters, we expect to post a performance in 2004 in the upper half of our 12.5 to 15% return on equity target range,” Mr Wilkins said.

The group’s insurance margin was 10.4% for 2003, compared with its target of 8%, and its claims operating ratio reached 93%. Personal lines insurers AAMI and APIA were the two biggest contributors to the group’s result.

Mr Wilkins says Vero, Promina’s general insurance business, performed especially well, with growth of about 20% in Australia and New Zealand and a net profit of $147 million.

“We are now well placed to capitalise on our focus, scale and knowledge within our carefully selected market segments,” he said.