Renewing customers could get up to £100 back despite summer flooding
Despite record flood claims totalling over £112m in last year’s floods and storms, NFU Mutual will be returning up to 10% of renewing customers' premiums in 2008 through its Mutual Bonus scheme.
The exact amount of benefit each policyholder will receive depends on the length of time they have insured with the company. In 2008 this will equate to reductions in general insurance renewal premiums of between 6 per cent and 10 per cent.
Ian Geden, NFU Mutual Group chief executive said: "Although last year was the worst for flooding claims in our 98-year history, our underlying financial strength means we can continue return money to loyal customers through Mutual Bonus discounts."
He explained that because there were no shareholders taking profits from the business, NFU Mutual had set up its Mutual bonus scheme to enable policyholders to benefit in years when its investment returns and claims experience allowed.
“The scheme was launched in 2000 and by the end of 2008 we calculate that more than £544m will have been returned to policyholders in the form of premium discounts.
“Mutual Bonus is a real benefit of our mutual status for policyholders. Everyone who renews a general insurance policy can benefit – saving someone with a £600 car insurance premium and a £400 home and contents premium a total of £100 if they have insured with NFU Mutual for five years or more.”
Mutual Bonus payments in 2008 are expected to total £80m.
