South West insurance firm Cornish Mutual posted a £2m post-tax profit in the year to September 2010, despite tough trading and bad weather conditions.
Turnover from premiums increased by 8.6%, to almost £16.5m, leaving a technical surplus of almost £292,000. An investment income of £1.4m and a £625,000 increase in the firm’s equity portfolio left a “satisfying” profit after tax of just over £2m – a rise of almost 13%, year-on-year.
“The past year has, as usual, provided many challenges from both weather and insurance compliance,” said chairman Gerald Blewett. “The severe snow in January and February led us to expect a large number of claims, but this turned out to be a lot less costly than originally thought.
“Our business has continued to develop and grow – further changes are planned as we continue our efforts to find new and better ways of providing service to members.”