MMA Insurance has announced its 2011 annual results: the final numbers that will be issued before the business is merged with Provident Insurance to form a new entity, Covéa Insurance, in the final quarter of 2012.
The strong set of results included strategic and financial highlights, as follows:
– Pre-tax Operating Profit rose to £12.1m from £0.3m in 2011
– Combined Operating Ratio fell to 99.6% (2010 – 105.9%)
– GWP was selectively increased to £230m (2010 – £220m) reflecting tough rating action on the MMA private car account (where volume reduced), balanced by growth elsewhere.
– Successful turnaround of the private car account (COR 96.7%) contributed circa 50% of the profit.
– The planned development of Commercial Lines made good progress, particularly bespoke SME business written in the regional network, where growth of 40% was achieved.
– Improvement in the Home COR to 97.9%.
CEO of MMA Garry Fearn commented: “2011 was a very successful year for MMA Insurance and we were delighted to see our determined action on the Private Car and Commercial Vehicle accounts in 2010 translate into a strong positive return.
“For MMA as a broker insurer, the development of Commercial Lines is strategically important and with a maturing regional office network substantial growth was achieved in a depressed market without compromising our underwriting discipline. Particularly pleasing was our progress with Schemes and MGA arrangements which represent a true insurer and broker partnership.
“Home is also a major account for us and against market trends we achieved rating increases in this area, whilst continuing to grow the business mainly through our affinity relationships.
“We look forward to 2012 and our transition into Covéa Insurance with great confidence. We attribute our success to not just working closely with our selected distribution partners but listening to their needs and those of their customers. I believe this focus is quite unique in the market.”
