Norwich Union saw profits rise, but its motor book loss continues...
Norwich Union (NU) saw profits rise for the year ended 31 December 2006, despite making an ongoing loss on its personal motor book.
The insurer reported an operating profit increase of £1.1bn up from £974m a year earlier. The underwriting result improved to £380m from £303m, but net written premiums declined from £6.1bn to £5.95bn.
In personal lines the insurer saw a 1% improvement in its motor combined operating ratio to 104%. The insurer took the bold move of pushing up rates in the sector in 2006 and said it had seen private motor rates increase by 5% throughout the year.
Rates in the insurer's commercial property book fell by 3%, in commercial fleet rates dropped by 2%. The insurer said early indications were that the commercial market was beginning to harden.
Richard Harvey, group chief executive of NU's parent, Aviva, said: "In the UK, our clear strategy and increased consumer confidence has delivered an excellent result and an increased market share.”
