L&G’s general insurance combined ratio deteriorates six points to 99% following weather-related claims
Legal and General’s (L&G) operating profits halved to £8m in the half year, compared to £17m in the same period last year following a batch of weather-related claims.
L&G, one of the main players in home insurance, still managed to post an underwriting profit, clocking up a combined ratio of 99% (2011 H1: 93%).
Total gross premiums shot up to £166m (2011 H1:£146m) and new business increased to £65m (2011 H1:£54m).
On operating profits, the statement said: “Overall, the General Insurance business delivered an operating profit of £8m (H1 2011: £17m) which includes the impact of freezing weather and storms in the early months of the year, and flood claims in June.”
L&G took its policyholder numbers past one and a half million thanks to an expansion on its broker relationships and direct.
L&G said: “We have continued to develop our share of the direct market, with new business premiums through this distribution increasing by 135%.
“Growth has also been achieved through broker distribution, where we have been successful in developing existing and new partner relationships. The business now has in excess of one and a half million policyholders.”