NFU Mutual joy at wooing new clients
NFU Mutuals push to broaden its customer base in the countryside is paying dividends, producing a 25% growth in the wider rural market during the first half of 2000 compared with the same period in 1999.
This sector now accounts for 54% of the companys business. Its rapid growth is good news for farmers, says spokesman Tim Price.
"Over the past three years NFU Mutual has held off increasing premiums in a number of cases.
"Our mutual status has allowed us to deliberately make an underwriting loss, using investment income from current premiums to keep the cost of insurance on farms down. Further growth in the rural sector will help that process."
Home and contents cover has gained over 1000 extra customers a month, with 40% more houses insured over the past six months. Strong growth has also been achieved in the equine market. And the commercial arm, which includes tradesmen and small and medium-sized manufacturing and distributing companies, has grown by about 50% on 1999 figures. *