Profits fall a third to £23.1m
Groupama has reported 3.6% growth in its personal lines business to £221.7 million in its 2007 results, bolstered by continuing growth in the company’s home and motor portfolios.
The french insurer announced a fall in profits of over £10m from £33.8m to £23.1m on the back of 2007’s treacherous weather conditions.The french insurer reported a combined ratio of 101.8% - which, it said, would have been 98.5% if the year’s storm and flood losses totaling £18.4m were excluded.
Revenues for 2007 were flat at £408.7m. The company said it was a reflection of disciplined underwriting in the personal and commercial lines portfolios, the impact of ongoing consolidation and continuing portfolio adjustment in the company’s healthcare subsidiary, Groupama Healthcare.
Groupama said its commercial lines revenues lifted slightly by about £3m in 2007 with premium income rising to £104.7m including fleets. The insurer said its scheme business performed well while open market business was challenged by the continuation of softening premium rates.
Chief Executive Francois-Xavier Boisseau said: “Groupama Insurances has again delivered a strong bottom line performance, with an excellent return on capital employed and a valuable contribution to the Group. This is against the backdrop of extremely competitive market conditions, continuing consolidation among the UK’s insurance intermediaries and some of the worst flooding for many years.
“Our concentration will always remain on the bottom line and we are content to sacrifice volume if we cannot achieve acceptable levels of return.”
