Groupama delivers 2007 growth despite floods and storms
by David Masters
Groupama has announced is 2007 results, with its personal lines business seeing growth of 3.6% to £221.7 million. This was buoyed by continuing growth in Groupama’s home and motor insurance portfolios.
The French insurer’s profits for the year were £23.1 million, a fall of over £10 million compared to 2007. The fall in profit is being attributed to the treacherous weather conditions in 2007.
Combined ration for the year was 101.8%. This figure would have been 98.5% had it not been for year’s storms and floods, which resulted in losses totalling £18.4 million.
The company’s 2007 revenues were £408.7 million, seeing no change compared to 2006. According to Groupama, this is a reflection of the company’s disciplined underwriting in both commercial and personal portfolios, and because of ongoing portfolio adjustment in the group’s healthcare subsidiary, Groupama Healthcare.
Revenue from commercial lines was up by approximately £3 million, seeing premium income increase to £104.7 million including fleets. The company believes that its scheme business performed well, while open market business was put to the test by the ongoing softening of premium rates.
Fracois-Xavier Boisseau, Groupama’s cheif executive, said of the results: “Groupama Insurances has again delivered a strong bottom line performance, with an excellent return on capital employed and a valuable contribution to the Group.
“This is against the backdrop of extremely competitive market conditions, continuing consolidation among the UK’s insurance intermediaries and some of the worst flooding for many years.
“Our concentration will always remain on the bottom line and we are content to sacrifice volume if we cannot achieve acceptable levels of return.”