UK - Rate increases in non-life don’t help profitability
Wednesday, 11 09 2016, Category: Insurance and Reinsurance, Country: United Kingdom
Despite premium rate increases in some non-life lines of business in the UK during 2015 and the first half of 2016, the benefit was largely offset by a combination of higher claims, an increase in the level of insurance premium tax (IPT) and levies for Flood Re, according to AM Best.
The earnings of UK non-life insurers were under pressure in 2015 in a difficult operating environment. Overall, there was a marked fall in pre-tax profits, principally due to substantially lower realised and unrealised investment gains. Technical results were hit by weather-related losses, but remained profitable in aggregate, once again helped by favourable prior-year development.
Source: Intelligent Insurer