Daily Insurance Industry News
 
 
Daily Insurance Industry News
Thursday 22nd of February 2018
February 20, 2009

Groupama revenues up 6% but profit falls

by Gill Montia

Story link: Groupama revenues up 6% but profit falls

Groupama Insurances recorded a 6% rise in revenues for 2008, to £432.6 million.

The company reported that the rating environment across personal lines had hardened during the year, with personal motor accounts rising consistently.

The insurer also saw strong results from its home insurance and niche accounts so that altogether, personal lines revenues rose to £225.2 million, up from £221.7 million a year earlier.

However, commercial lines and healthcare revenues remained static and under pressure and pre-tax profit fell to £18.5 million compared with £23.1 million in 2007.

The company’s chief executive, François-Xavier Boisseau, believes Groupama delivered a solid performance against a very challenging and sometimes extraordinary economic environment.

The company saw a return on equity of 13.6%, which he described as “a very acceptable outcome”.

The chief executive also noted that some sanity was returning to premium rating in the private motor market, and that this needed to continue throughout 2009.

Mr Boisseau added that he would be happy to see Groupama’s share of the market reduce if this restored levels of profitability.

Finally, the business will continue to focus on its specialist niche schemes such as its Optima Small Fleets insurance and its e-business.

 

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