R&M Issues U.K. Insurers “Performance Ratio Benchmarking” Report

January 12, 2006

Dublin-based Research and Markets announced the addition of “Performance Ratio Benchmarking of the Top UK Insurers 2005” to their offering.

“This report provides a consolidated source of information about the underwriting profitability of the top UK general insurers by line of business,” said the bulletin. “It analyzes several key performance ratio metrics for the top players’ general insurance business as a whole and by line of business.”

The report includes underwriting performance ratios and benchmarking for the top 20 general insurers up to 2004, and “provides line of business analysis covering accident and health, liability, motor, pecuniary loss and property. Benchmarking of the top players within and across insurance lines to identify the best performers and their most profitable lines is also provided.”

R&M noted that the “vast majority of the top 20 insurers recorded improvements in profits in 2004, due to better underwriting profits in many lines of business and better investment results. The profits of Norwich Union, the largest player in the UK market, almost doubled from £649 million [$1.14 billion] to £1.284 billion [$2.27 billion].”

The report also found that the “loss ratio of the top 20 motor insurers improved in 2004. The performances of the bottom half of the top 20 motor insurers (those ranked 11 to 20) contributed strongly to the overall reduction in loss ratio, implying a greater degree of pricing discipline than shown by larger insurers.

“Zurich FS has made a remarkable turnaround between 2000 and 2004, turning all of its insurance lines into healthy profit making books. The insurer has clearly benefited from the radical restructuring plan brought in May 2002, placing the company in a strong position in softening markets.”

The bulletin gave the following “Reasons to Purchase” the report:
— Identify the consistent best and worst performers across the main insurance lines and understand the main factors driving their performance
— Learn which lines of business have been the most profitable for insurers over the last five years and benchmark yourself against the competition
— Understand at what stage of the cycle each line of business is and learn which players were dragging the market down or prolonging its recovery

Companies mentioned in the report include: Norwich Union, Zurich FS, Allianz, Liverpool Victoria, St Andrew’s, AXA, Churchill, NIG, New Hampshire, Royal & SunAlliance and Direct Line.

For more information visit http://www.researchandmarkets.com/reports/c30585, or contact: Research and Markets Laura Wood Fax: +353 1 4100 980.

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