Co-op insurance profits up 48.5%

Co-op Insurance profits increased 48.5% to £31.1m last year, despite a worsening claims ratio.

The claims ratio increased from 74.2% to 76.3% following the impact of the exceptionally cold weather during the start and end of the year.

Co-op managed to lower the commission and expense ratio from 36.2% in 2009 to 32.1%. Net written premiums were up 24.3%.

Gross written premium improved by 35.3% to £574.2m following a rise in new business volumes and market wide increases in average premiums.

Insurance director David Neave said: “These strong results are evidence that consumers increasingly see the Co-operative as a real alternative in the market.

“Our trusted brand combined with a focus on service is helping to set us apart.

“With recent additions of pet insurance and an innovative telematics young driver insurance product, we are continuing to invest in the future and are well positioned to further grow our business.”

Satisfaction amongst Motor customers is 74%, and 71% for Home customers, compared to market averages of 65% and 60% respectively (GfK NOP Financial Research Survey (FRS), January 2010 to December 2010)

To support continued growth in the market The Co-operative Insurance has launched several new products during 2011. Earlier this month, it launched an innovative new product for young drivers which uses telematics and rewards responsible driving with lower premiums. It has also added pet insurance to its range of products since the turn of the year.