Fortis Insurance UK reports growth in profit and premium income

Fortis Insurance UK 's non life profit before tax increased to £76m for 2008 compared to the £30m it reported in 2007. Non-life gross written premium was slightly up to £760m from the £758m it reported in 2007. Fortis said it had a strong capital position of £346m and that it's pricing volume and discipline had been maintained.

Fortis reported non-life combined operating ratio after investment income improved to 92.2 per cent (2007: 98.1 per cent). The life business with new annual premium reported at £2.77m and that it gained 11,600 customers since launch in July 2008. Total Broker Income for the retail businesses was up 1.2% to £95m.

Fortis said its investment portfolio outperformed the market whilst maintaining a prudent approach. Investment values increased by £43m over 2007 levels.

It said its operational highlights included a successful launch of Life business with expansion into new offices in May. It added that significant new partnerships were secured, laying the foundations for growth in 2009-10. Fortis aims to continue commercial and personal lines product development.

It said around 150 new jobs are to be created in 2009 to support business growth.

Fortis Insurance UK also announced that it had joined forces with Heath Lambert to secure a five-year deal with Post Office Financial Services (POFS) to launch a suite of products to the UK SME market. The new partnership follows an extensive market tender process, which included the leading three SME insurers, to create the largest SME affinity deal for commercial insurance in the UK.

Barry Smith, chief executive, Fortis UK 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.

“We continue to make major steps forward in the delivery of our strategy through the launch of new products and channels, particularly in the commercial and protection markets. Following a number of new deals announced already this year, I am also delighted to announce today a new partnership with Heath Lambert and Post Office Financial Services to launch a suite of products into the SME commercial market."

Phil Ashkuri, director of insurance, POFS said: “The launch into the SME market complements the Post Office? financial services proposition to our customers at a time when financial stability and peace of mind has never been more important. Central to our decision to work with Fortis and Heath Lambert was the effectiveness of their combined business model, experience of this sector and more importantly, the priority they place on maintaining a strong customer focus.”