Gross written premium up 15% to £349m
Legal & General’s (L&G) general insurance business made an operating profit of £30m in 2012, down 29% on the £42m it made in 2011.
The combined operating ratio (COR) deteriorated by five percentage points to a still-profitable 95% (2011: 90%). Accordingly, L&G’s general insurance (GI) underwriting profit dropped 37% to £17m (2011: £27m).
The company said: “Despite less than favourable weather conditions in 2012, the business delivered a healthy combined operating ratio.”
L&G noted in its results that the 2012 weather losses were consistent with its assumptions, and that 2011 was a benign year for weather.
L&G grew GI gross premium by 15% to £349m in 2012 (2011: £304m). The division benefited from 27% growth in its broker account and a 36% increase in direct sales.
L&G’s GI business writes predominantly household business, which accounted for £29m, or 96%, of its operating profit and £327m, or 94% or its gross written premium.
L&G GI 2012 results in £m (compared with 2011)
- Gross written premium: 349 (304)
- Net cash generation: 23(31)
- Tax: 7 (11)
- Operating profit: 30 (42)
- Underwriting result: 17 (27)
- COR (%): 95 (90)
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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