The insurer incurred losses of £15m from December storms
Legal & General (L&G)’s general insurance business made an operating profit of £51m in 2015, down 13.6% pm the £59m it made in 2014.
The combine operating ratio (COR) at the insurer increased by two percentage points to 89% (2014: 87%).
The company attributed the dip in profitability to the £15m it incurred from the December storms.
At the start of 2014 L&G had incurred £12m in additional claims as a result of the adverse experience in the first quarter of 2014.
Gross written premium at L&G’s GI business decreased 10.6% to £337m in 2015 (2014: 377).
Surrey office closure
On 21 January 2016, the group made a decision to close an office located in Kingswood in Surrey.
The group plans to close the office in 2018.
The net cost associated with this closure, including the write-off of previously capitalised property, plant and equipment and expenditure relating to redundancy and rent and rates, is estimated to be £50m, which is expected to be recognised in the 2016 Consolidated Income Statement.
Group result
As a group L&G made a profit after tax of £1.1bn in 2015, up 10% on the £992m it made in 204.
It generated net cash of £1.3bn, up 14% on the £1.1bn it generated in 2014.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
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