NFU Mutual profits rise 84% despite huge flood payouts
© Tim Scrivener December’s floods cost insurer NFU Mutual £50m — but did not dent its profits throughout 2015.
Calmer weather over the rest of the year meant underwriting profits rose 84% to £281m. Income from motor, commercial and personal insurance premiums increased 2.4% to £1.362bn.
The group’s operating ratio, which measures its control of costs, was 77.5%, down from 87.5% in the previous 12 months.
Other parts of the business faced challenges, which meant overall profits fell from £409m to £359m.
£7.4m passed back to NFU and £82m to members
The Mutual also shrugged off stock market volatility to help its overall invested assets grow by £400m to £16.3bn.
It also passed £7.4m back to the NFU to help running costs, donated £30,000 to North of England communities hit by floods, and gave £450,000 to support farm safety and help young people in farming and rural studies.
Group chief executive Lindsay Sinclair said the bonus for all general insurance members would rise 2.5% in 2016. The total amount returned to members will be £82m, compared with £63m last year.
“We pride ourselves on the added value we offer our members and our focus remains on delivering quality products and a first-class service,” she said.