NFU Mutual will cut premiums by 10% under its mutual bonus scheme this year
NFU Mutual general insurance customers’ 2007 renewal premiums are being reduced by up to 10% through the company’s MutualBonus scheme.
For NFU Mutual’s life customers, rising stock markets helped boost policyholders’ returns. Bonus rates on the majority of ‘with profits’ policies have been increased following a 12.5% pre-tax increase in the value of the company’s ‘with profit’ fund. Holders of unit linked investments also benefited from substantial rises in the value of their funds.
Group Chief Executive Ian Geden commented: “2006 was a year of good results and significant progress on all major fronts – and as we are a mutual our members will be benefiting from our success.”
He reported a year of continuing growth for both NFU Mutual’s general insurance and life businesses which resulted in a £384m after-tax profit.
General insurance premium income increased by 3% to £868m and new business – from both farming and non-farming customers – resulted in an extra 70,000 covers going on the books.
He said that 2006 had proved to be a record year for new life, pension and investment business - up 16%. Contributions to pensions also increased significantly following an initiative to help people understand the opportunities available following the introduction of new pension legislation.
The company’s strong financial performance enabled it to further strengthen its balance sheet, he continued. Funds under management exceeded £11bn for the first time in its 96-year history, while its running costs remained amongst the lowest in the insurance industry.
