NFU Mutual, the UK’s leading rural insurer, has turned in a healthy set of results for the year in a very challenging environment.
On the general insurance side of the business, (motor, commercial and personal insurance), premium income continued to show good growth, increasing from £1.330bn in 2014 to £1.362bn in 2015.
Helped by relatively benign weather conditions for most of 2015, and despite the December floods which are estimated to cost around £50m, the insurer made an increased underwriting profit of £281m.
NFU Mutual’s strong financial position continued to be underpinned by its prudent management of costs, claims handling, pricing and risk selection. All of which resulted in a combined operating ratio of 77.5%.
On the Life side of the business, 2015 saw major changes for the whole industry and a significant shift in consumer behaviour.
Well placed to meet these changes and new consumer needs, NFU Mutual’s Life sales went from strength to strength with Annual Premium Equivalent* growing from £48m to £57m, an increase of 18.8%.
The volatility of the stock market has had an impact on some fund performances, however, overall investment assets under management by the Group increased by almost £400m in 2015 to £16.3 billion.
Lindsay Sinclair, Group Chief Executive, said: “We run our mutual business for the long term interest of our members.
“I am delighted to announce that during 2016 we are increasing the Mutual Bonus by 2.5% for all GI members; £82m up from £63m returned in 2015.
“Unlike many of our competitors we do not charge any extra fees for general insurance products, and, from 1st July 2016 we will remove altogether the already low charge for direct debit payments.
“We pride ourselves on the added value that we offer our members and our focus remains on delivering quality products and a first class service.”
During 2015, NFU Mutual also continued to provide financial and practical support to rural communities in the following ways:
• £7.4m provided to support the National Farming Unions with running costs;
• The NFU Mutual Charitable Trust donated £30,000 to the ongoing work with communities affected by floods across Northern England;
• The trust also distributed over £200,000 to worthy causes and to help young people fund further education in various agricultural and rural studies;
• NFU Mutual continued to support the Farm Safety Foundation with another donation of £250,000;
• £32,000 was donated through the Community Giving Fund and Charity Matching Fund;
• Staff raised a total of £145,000 for corporate charity, Guide Dogs.
