Domestic & General announced its warranty turnover for the five months ending 30 November 2002 is up almost 40% compared with the corresponding period last year.
Earned warranty income has increased by approximately 30%
reflecting the strong new business growth over the last eighteen months, the company said.
But claims for the five month period have increased by approximately 46% giving a claims ratio of 52.7%. Domestic & General said that the increase represents a small increase over its traditional claims range and is consistent with the claims ratio for the second half of the
last financial year reflecting the increased weighting of new business which carries a higher claims ratio.
Domestic & General added that turnover from support services has not grown as fast as expected and has
increased by approximately 8%.
Infrastructure expenses have increased ahead of business growth from existing accounts and new business, both of which have been slower to materialise than expected.
This has had the effect of reducing the contribution from support services by approximately £500,000 compared with the
corresponding period last year.
