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Daily Insurance Industry News
Friday 27th of April 2018
August 10, 2007

NU and Axa UK results present mixed bag

by Gill Montia

Story link: NU and Axa UK results present mixed bag

NU and Axa UK results present mixed bag

Norwich Union (NU) recorded decreased operating profit of £269 million for its general insurance business, in the six months to the end of June.

The figure, which compares with £561 million in the first-half of 2006, resulted in a combined operating ratio for the group of 102%, compared with 92% in the first-half of 2006.

Net written premiums were down to £2.7 billion, from £2.9 billion in the first-half of 2006.

The bill for adverse weather in the first-half of this year amounted to £235 million: £175 million from the June floods and £60 million from the January storms.

However, the impact of these losses has been mitigated by the release of group reserve of £245m.

AXA UK has also published its first-half results, showing a 9% increase in general insurance revenues in the six months to the end of June, to £1.86 billion.

The company experienced strong growth in its health business and at the same time, personal motor premiums contributed £91 million in growth to its personal lines business.

The growth in motor premiums reflects the group’s acquisition of Swiftcover early in the year.

However, claims for this summer’s floods were partly to blame for the deterioration in the group’s general and health combined ratio, from 96.7% in the first half of 2006, to 102.4% in first-half of 2007.

Axa’s bill for the January storms amounted £37 million before tax, and for the June floods, £78 million before tax.

The company’s estimate for the cost of the July floods is around £120 million before tax.

 

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