The UK’s flood reinsurance scheme achieved a pre-tax profit of £130 million ($220 million) in its first year, capping a successful bid to improve insurance affordability for homeowners.

Flood Re recorded £180 million ($305 million) of levy income and £28 million ($47 million) gross written premium in the year to March 31.

“Alongside our goal of improving the availability and affordability of flood insurance, we have a second goal… to manage over the lifetime of the scheme the transition to an affordable market for household flood insurance where prices reflect the risk of flooding,” Chairman Mark Hoban said.

“We will be working with the insurance industry, communities at risk of flooding, government at all levels and society to ensure that by 2039, Flood Re is no longer needed.”

The scheme is a collaboration between the UK Government and the insurance industry to provide affordable cover for homes in high-risk areas. Four out of five householders with previous flood claims have seen quotes fall by more than 50%.

Access to cover has also improved sharply, with 95% of households with previous flood claims able to obtain two or more quotes, up from 9% before April last year.

“We’re encouraged by the number of policies we have backed since launch and the significant increase in both affordability and availability,” CEO Andy Bord said.