Royal & Sunalliance (RSA) chief executive Bob Mendelsohn and his board directors all failed to qualify for performance-related bonuses for 2000, according to the insurer's annual report.
Despite this, Mendelsohn is still one of the best paid insurance executives in the industry. He earns a financial package of £1.05m, an increase from last year's figure of £976,000.
His package comprised £632,000 in salary and fees and £413,000 in allowances and benefits.
In contrast, Bob Scott, chief executive of Britain's largest insurer CGNU, earned a total of £815,000.
It is believed to be the third year in a row that Mendelsohn has not received a performance-related bonus.
Mendelsohn is eligible under his personal contract for a grant of RSA shares equal to his annual salary multiplied by 1.6 if the group's sales and shares growth meet certain challenging criteria, according to the report. One such condition is that RSA's share price must grow between 5% and 20%.
This would have equated to a bonus of around £1.7m had RSA's share price risen by the full 20%.
A separate annual bonus plan for RSA's executive directors also failed to be triggered.
The annual report for 2000 shows RSA's general insurance premiums grew by 16% rising from £7.1m to £8.3m.
The group's operating profit dropped from £566m to £476m last year as a result of storm damage losses of £180m.
Mendelsohn said the group continued to see higher rates in its major classes of general insurance during 2000 and expected this trend to continue.
He said: “We are entering 2001 with confidence that we continue to make progress towards our target of achieving a general business operating ratio of 103% for the year.”