Fortis UK reports doubling of profit

by David Masters

Story link: Fortis UK reports doubling of profit

Fortis Insurance UK has reported a doubling of profits in 2008, and has pledged to create at least 150 new jobs this year.

Non-life profit before tax increased to £76 million in 2008, compared to £30 million the previous year.

The increase came despite a small drop in non-life gross written premiums, down to £758 million compared to the £760 million it reported in 2007.

Combined operating ratio after investment income improved to 92.2%, down from 98.1% in 2007.

Barry Smith, Fortis UK’s chief executive, said: “I am pleased to report continued growth in both profit and premium income in 2008, despite the ongoing challenging market conditions.

“We continue to receive an overwhelming positive response from the market, evidence of the strong relationships we have with our brokers and partners and the overall appeal of our insurance propositions.”

He added that the group is planning a series of new product launches in 2009 and 2010.

Smith said: “Our results demonstrate the success of our multi-channel strategy, which combined with our continued innovation and service excellence, will provide a strong platform for growth in 2009 through 2010.

“This growth will lead to the creation of approximately 150 new jobs in our business in 2009.”

In addition, Fortis UK’s new Fortis Life unit – established in July 2008 – wrote annual premiums worth £2.77 million, and collected over 11,500 customers.

Martin Werth, managing director of Fortis Life, said the recession was encouraging people to take responsibility for their financial situation.

“It is reminding people about the debt that they really have,” Werth said.

“A number of advisers have moved more into selling protection so people have more access to advice.”