NFU Mutual goes from loss to profit in 2012

NFU Mutual made a profit of £330m in 2012, following a £47m loss in 2011.


In the past calendar year, the company saw a general insurance premium income of £1.27bn, exactly the same as the previous year, with a combined operating ratio of 96.1%, up 5.1% on 2011.


Underwriting profit fell from £105m to £47m in 2012, while funds under management grew by £1bn to £13.5bn, due to the company being “well-positioned to benefit from the strong returns in equities and bonds” said Lindsay Sinclair, group chief executive.


“In a year of continuing economic difficulty, volatile markets, and costly flooding in many parts of the UK, the Mutual has turned in a very solid investment performance and another positive insurance result,” he said.


“[Last year] started with hosepipe bans and warnings of drought, but ended as the second wettest year in the UK since NFU Mutual was formed in 1910. Claims relating to the heavy floods and other severe weather conditions added up to £68m.


“As part of the fabric of the rural community, we understand the issues affecting our members’ day-to-day lives and remain extremely well-placed to help them deal with the risks they face.”
Lindsay Sinclair, NFU Mutual group chief executive

“Total premium income for the year was largely unchanged from 2011, reflecting the flat economic growth of the UK overall, but we maintained a good underlying profitability and the financial strength of the company was further reinforced.


“As part of the fabric of the rural community, we understand the issues affecting our members’ day-to-day lives and remain extremely well-placed to help them deal with the risks they face,” Mr Sinclair added.


Members received more than £76m in bonuses, and the company supported farming and the rural community through donations, sponsorships and other activities. These included donating £7m towards the running costs of the NFU and associated unions, funding police resources which recovered £1.37m of stolen farm machinery and providing safety courses to more than 1,300 farmers and workers.


The company also sponsors the National Federation of Young Farmers’ road safety campaign, Drive It Home, which is partnered by Farmers Weekly.


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