NFU profit for the year almost halves, while the insurer’s general insurance premium income increases by £80m year on year

More than 900,000 NFU Mutual policyholders will receive loyalty discounts of up to 18.5%, despite overall profit almost halving year on year.

For 2017, the insurer reported a profit for the year of £540m, down from £1,026m in 2016.

Underwriting profit decreased from £151m in 2016 to £102m in 2017.

NFU’s combined operating ratio (COR) also took a hit, increasing from 88.3% in 2016 to 92.5% in 2017.

However, the insurer reported a general insurance premium income of £1.48bn, up from £1.397bn in 2016.

All general insurance customers will continue to receive a loyalty bonus discount of between 13.5% to 18.5% at renewal.

Lindsay Sinclair, NFU group chief executive, said: “Strong company results in 2017 and a robust capital position means more than 900,000 members – people who have insured their homes, cars, farms and businesses with us – will get discounts of at least 13.5% when they renew. We believe loyalty should be rewarded and the Mutual Bonus increases to 18.5% for members who renew for the fifth year or more in a row.

“Our members value the way we reward loyalty. They also value the local, personal customer service that we are able to provide. These are big factors in the decision of a record 94.8% of our members choosing to renew their insurance with us in 2017.

“Such strong retention rates are complemented by our financial strength. Solid results for both the General Insurance and Life sides of our business is helping us achieve one of our strategic objectives: sustainable, profitable growth. We’ve seen premium income rise for the seventh year in a row while the value of the assets we manage have also grown to £20.1bn.

“By running our business in the long-term interests of our members, we remain able to set ourselves apart from our competitors, offering value to our members and rewarding loyalty, which keeps us in a strong position going into 2018 and beyond.”