NFU customers can expect to see 2007 renewal premiums drop by up to 10%
NFU Mutual is to lower general insurance customers' 2007 renewal premiums by up to 10% through the company's MutualBonus scheme.
Citing lower than expected claims costs as a key contributor in the move, NFU group chief executive Ian Geden said: "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.
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.
