General and business insurance provider Fortis UK announced it’s 2010 first half written premiums in its non-life markets increased by 16.6 per cent to £468.4 million, saying that its pre-tax profits of £8.4 million were an improvement in comparison to its 1st quarter loss of £3.2 million, but still vastly behind its £26 million first half profits from 2009.
Its combined general and commercial insurance ratios had improved from its first quarter high of 110.2 per cent, down to 106.4 per cent for the first half of the year; in comparison to last year, Fortis’ combined ratios were reported at 104.4 per cent.
Fortis reported that its figures included the start-up costs of its new partnership with Tesco Bank, totaling £3.4 million.
Growth experienced in the insurer’s personal lines business is reflective of household and travel book increases to £118 million and £28 million, respectively. Despite so-called “leaky pipes” claims, Fortis reported that household performance is strong, but its travel book returns have remained challenging due to claims cost experiences outstripping market-wide rate increases.
GWP for private cars increased to £235.1 million, up nearly two and a half per cent, which Fortis attributed to the issues the entire industry had been experiencing in regards to an increase in personal injury claims, in addition for a further need for rates to be strengthened.
Insisting that its continuation of approaching pricing consistently by aligning it with underlying risk factors, Fortis said that there had been a focus on a high frequency of bodily injuries, in addition to council tax bands and other external sources of data being utilised, and recent changes to technical ratings such as full changes to the post code rating.
Fortis also made the claim that it currently had, in regards to the private motor market, the lowest unit cost of production. The second largest insurer of private cars in the UK, Fortis covers 1.6 million cars on the road in Britain.