Provident cuts losses with improved underwriting but prior year claims still haunt book

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Provident slashed its operating loss to £2.8m in 2011, compared £10.1m in 2010, largely due to strong rating and underwriting action, 2011 accounts from MMA Holdings (UK) reveal.

The motor insurer continued to remain in the red though, as it had to strengthen reserves to cope with prior year claims.

Gross written premium increased to £197m last year, compared to £187m in 2010. Total loss after tax was £2.1m compared to £6.7m in 2010.

Provident’s current year combined ratio for 2011 was 92.3% (2010: 104.9%). The company’s reported combined ratio, which includes the impact of prior years, was 103.6% (2010: 108%).