The United Kingdom’s leading rural insurance company, the NFU Mutual, yesterday announced that it had sustained a consolidated loss of £47 million last year.
But chief executive Lindsay Sinclair said this loss was largely because of unrealised losses on the company’s equity portfolio and the group’s inherent financial strength was such that it was able it to absorb such fluctuations with the longer-term objective of achieving higher returns.
The company also paid out some £105m to members in the past year as part of its loyalty bonus scheme for customers. With farming sitting at the very heart of the business, Sinclair said he was happy to announce the general insurance renewal rate was high – at 94 per cent despite what he described as difficult market conditions.
Last year, £1.273 billion was received by the Mutual in premium income, up 6 per cent on the previous year.
Over the past 12 months, NFU Mutual, which was started by a group of farmers just over 100 years ago, also supported the running costs of the National Farmers Unions both north and south of the Border to the tune of £6m.
The company has also been involved in campaigns over safety and security on the farm.
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