Decline as a result of 7% drop in GWP and rise in ceded premium
St Andrew’s Insurance, a general insurance division of Lloyds Banking Group, made a net profit of £106.4m for the first nine months of 2010, down 11% on the £119.5m it made in the same period of 2009.
As a result of the lower profitability, St Andrew’s shareholders’ equity fell to £296.8m from £355m.
The decline in profits was driven in part by a 7% slump in gross written premium to £462.7m in the first nine months of 2010, from £502.3m in the same period last year, but also a sharp jump in the amount of earned insurance premium St Andrew’s ceded to reinsurers. Reinsured earned premium revenue in the first three quarters of 2010 was £67.3m, up 79% on the £37.6m recorded in the same period of 2009.
On the positive side, net insurance claims incurred fell to £128.2m from £145.4m, and fees and commissions paid on insurance contracts fell to £189.7m from £214.1m.
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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