COR increases by three points to 87% after £12m of additional claims
Legal & General (L&G)’s general insurance business made an operating profit of £59m in 2014, down 14% on the £69m it made in 2013.
The combined operating ratio (COR) at the household insurer increased by three percentage points to 87% (2014: 84%).
The company attributed the dip in profitability to “adverse weather experience in the first quarter of 2014” which resulted in £12m of additional claims.
Gross written premium at L&G’s GI business increased by 0.5% to £377m (2013: £375m). The company said that its direct general insurance business increased premiums by 29% to £88m (2013: £68m) thanks to “enhanced digital capabilities”.
As a group, L&G made a profit after tax of £992m in 2014, up 9% on the £906m it made in 2013.
It generated net cash of £1.1bn, up 10% on the £1bn it generated in 2013, and produced a return on equity of 16.9% (2013: 16.1%).