Sometimes when insurers announce record profits, policyholders shake their heads and wonder why such a good performance has coincided with their premiums rising. However, policyholders with
NFU Mutual will doubtless be celebrating their insurer’s success.
The company has today announced record profits – scooping just over £1 billion compared to £359 million in 2015.
As a result, farmers who insure with the firm are in line to pick up a significant discount thanks to the Mutual Bonus scheme offered to members: this is a percentage of renewal premiums and is expected to be notably higher than previous years.
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A report by Farmers Weekly noted that customers picked up a 6% bonus during 2014 and an 8.5% bonus for 2015. The figure for 2016’s results should be announced in April and is expected to be sizeable.
Overall, the company was boosted by a strong investment performance with total funds under management climbing from £16.3 billion to £18.8 billion. However, underwriting profits fell back from £281 million to £151 million while the combined operation ratio was 88.3% compared to 77.5% a year earlier.
“All our general insurance customers – about a million people with farms, businesses, homes and cars insured with us – will see a significant increase in our Mutual Bonus payment, which comes in the form of a discount off renewal premiums,” commented Lindsay Sinclair, group chief executive.
“It’s a very important way of showing our appreciation of our customers’ loyalty to the business.”
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