NIG returns to profit in 2011

Broker-only insurer NIG has returned to profit in 2011.

While parent insurance group RBS Insurance declined to provide separate figure for NIG, it said the overall commercial business, which includes NIG and Direct Line for Business, improved its underwriting result by 19% to £57m in 2011 (2010: £48m).

RBSI announced in its results this morning that commercial lines gross written premium, including NIG, increased by 10% year on year, bucking the group-wide GWP drop of 5%.

“NIG’s return to profit in 2011 is a culmination of the investment that has been made to rebuild the business and the hard work of everyone in the team,” NIG managing director Jon Greenwood said.

He said NIG has been investing in people and products over the past year, hiring more than 150 new staff and increasing support to key customers in the broker market.

“This has already resulted in the rebranding of our business, the launch of our First Broker Club and the creation of five new products,” Greenwood said. “We had a solid performance in 2011 and I look forward to building on this success throughout 2012.”

RBSI chief executive Paul Geddes said talk about RBSI divesting NIG had now gone away, and the result reinforces this.

“We are investing in the business, we are investing very much in e-trading, we can see it has a very bright future and it is great to see it back in profit,” Geddes told Insurance Times this morning. “It is certainly a big part of our future growth.”