CFS reports strong first half for insurance business

by Gill Montia

Story link: CFS reports strong first half for insurance business

Co-operative Financial Services (CFS) has reported pre-tax profit of £81.4 million for the 28 weeks to the 25th July, up from £73.4 million in the same period of 2008.

Profit from the group’s General Insurance business increased to £14.6 million, compared with a loss of £1.5 million a year earlier, and the unit’s claims ratio fell to 73.3% from 74.0% in 2008.

General Insurance new business income increased by 27%, to £78.3 million, and annualised new premiums for Life and Savings rose 18%, to £50.24 million.

Life protection APE was up from £9.26 million in the first half of 2008 to £13.07 million in the same period 2009.

The retail banking side of CFS also turned in an impressive sales performance, although profits dipped.

Current account sales increased 68% on 2008 and average customer deposits grew by 21% to £11,209 million.

Average customer lending grew by 12% to £9,908 million, reflecting significant growth in corporate and mortgage balances.

CFS chief executive, Neville Richardson, commented: “These are encouraging trading results, which serve to illustrate the strength, sustainability and financial prudence of our business in what remains a very tough economic environment.”

He adds: “We are at the start of creating something quite special within UK financial services, a business which is member-owned, customer-led and ethically guided.”

CFS completed its merger with Britannia Building Society in August.