Storm and flood claims push down NFU Mutual profit

Profit after tax at the NFU Mutual fell almost 35% to £413m in 2014, compared with £635m in the previous year.

The year included the longest period of severe weather for 100 years, with storm and flood claims of more than £80m. Difficult market conditions and more modest stock market investment performance than in recent years were also blamed for the profit fall.

However the performance of the NFU Mutual’s property portfolio had been excellent, it said.

In contrast to a rise in flood and storm claims, the cost of theft claims fell in most parts of the UK.

See also: Flood misery continues as insurance claims grow

General premium income for motor, commercial and personal insurance cover rose from almost £1.29bn in 2013 to £1.33bn in 2014, while life cover income from new annual premiums grew from £45m to £48m.

A bonus of £61m will be shared by members – the policyholders. This compares with a £68m payout last year.

During the year the NFU Mutual also:

• Set up the Farm Safety Foundation to tackle high accident rates
• Gave £7m support to the National Farmers’ Unions
• Was named Which? Best Insurance Services Provider in 2014.
• Donated £50,000 to charities helping farmers and rural communities devastated by floods on the Somerset Levels through The NFU Mutual Charitable Trust
• Gave three postgraduate agricultural students bursaries to pay 75% of course fees
• Continued to fund the police agricultural vehicle theft unit and support local rural crime-fighting initiatives through its Country Crime Fighter Award programme.