Performance Ratio Benchmarking of the Top UK General Insurers 2008

Performance Ratio Benchmarking of the Top UK General Insurers 2008 published by Datamonitor in January, 2009. This report consists of 50 pages and the price starts from US $ 4495.

Introduction

Abstract

Overview

Introduction

Performance Ratio Benchmarking of the Top UK General Insurers 2008 provides the reader with an in-depth analysis of the performance ratios of the top 10 UK insurers across five major lines of business: accident and health, liability, motor, pecuniary loss and property insurance.

Scope

• Essential performance measures for the top 10 UK insurers in 2007, including the loss, expense and combined ratios for these players
• Insight into the underwriting efficiency of the top 10 UK insurers
• Information on premium income changes for leading UK insurers in 2006 and 2007

Report Highlights

All top 10 property insurers saw their loss ratio increase in 2007 due to the summer floods.

The average combined ratio of the top 10 UK liability insurers improved by 7.7 percentage points, with AXA, Zurich and RSA seeing the largest decreases in 2007.

The motor insurance market recorded a heavy underwriting loss in 2007 and motor insurers made significant reserve releases.

Reasons to Purchase

• Understand changes in average performance ratios across the five major business lines
• Benchmark your performance ratios against those of major competitors

Table of Contents

• Overview
  • Catalyst
  • Summary
• Table of Contents
• Table of figures
• Table of tables
• Performance ratio benchmarking in UK accident and health insurance
  • The average loss ratio of the top 10 UK accident and health insurers decreased by one percentage point in 2007, with five insurers witnessing an improvement in their ratios
    • The average loss ratio of the top 10 UK accident and health insurers improved marginally in 2007
    • New Hampshire and ACE witnessed significant improvements in their loss ratios in 2007
    • Norwich Union, ComInsofAmerica, SimplyHealth and Standard Life saw their loss ratios deteriorate in 2007
  • The average expense ratio of the top 10 UK accident and health insurers decreased by 1.2 percentage points in 2007, as five insurers saw improvements in their ratios
    • The average expense ratio of the top 10 UK accident and health insurers decreased by 1.2 percentage points in 2007
    • ACE, Norwich Union and Simply Health achieved the largest improvements in their expense ratios
    • AXA, ComInsofAmerica and Standard Life saw the largest increase in their expense ratios
    • The rest of the top 10 UK accident and health insurers saw marginal changes in their expense ratios
  • The average combined ratio improved by 2.2 percentage points, with ACE and New Hampshire seeing the two largest decreases in 2007
    • The average combined ratio of the top 10 accident and health insurers decreased by 2.2 percentage points to 90.2%
    • Five of the top 10 UK accident and health insurers recorded improvements in their combined ratios in 2007
    • ACE and New Hampshire saw the largest decrease in their combined ratios, which were significantly higher than their peers
      • Three of the top 10 accident and health insurers experienced marginal changes to their combined ratios in 2007
    • Four of the top 10 UK accident and health insurers witnessed increases in their combined ratios
• Performance ratio benchmarking in UK liability insurance
  • Five of the top 10 insurers witnessed an improvement in their loss ratios in 2007
    • The average loss ratio of the top 10 UK liability insurers decreased by 10.9 percentage points in 2007
    • NFU Mutual and QBE saw the largest increase in their loss ratios
    • AXA, Zurich and RSA achieved significant improvements in their loss ratio
    • New Hampshire achieved an improvement in its loss ratio and premium income growth
  • All of the top 10 liability insurers recorded an increase in their expense ratios in 2007
    • The average expense ratio of the top 10 liability insurers increased by 3.2 percentage points in 2007
    • New Hampshire possessed the lowest expense ratio in 2007
    • Norwich Union, Zurich, RSA and Allianz recorded the highest increases in their expense ratios in 2007
  • The average combined ratio of the top 10 UK liability insurers improved by 7.7 percentage points, with AXA, Zurich and RSA seeing the largest decreases in 2007
    • The average combined ratio of the top 10 liability insurers decreased by 7.7 percentage points to 94.4%
    • NFU Mutual saw the largest increase in its combined ratio in 2007, which was significantly higher than its peers
    • Four of the top 10 UK liability insurers managed to improve their combined ratios significantly
• Performance ratio benchmarking in UK motor insurance
  • The motor insurance market recorded a heavy underwriting loss in 2007 and motor insurers made significant reserve releases
    • The motor insurance market recorded an accident year combined ratio of 113.2% in 2007
    • Motor insurers have increasingly relied on reserve releases in recent years
  • The average loss ratio of the top 10 UK motor insurers increased in 2007
    • The average loss ratio of the top 10 motor insurers rose by 0.9 percentage points in 2007
    • Four insurers saw their loss ratios increase
    • Six of the top 10 motor insurers recorded a decline in their loss ratios in 2007
  • The average expense ratio of the top 10 UK motor insurers decreased marginally, with Allianz recording the largest reduction in 2007
    • The average expense ratio of the top 10 UK motor insurers decreased by 0.1 percentage points to 27.4%
    • RSA, Norwich Union and UKI saw the largest increases in their expense ratios
    • Half of the top 10 UK motor insurers achieved an improvement in their expense ratios
      • Allianz witnessed the greatest improvement in its expense ratio which was significantly larger than its peers
      • Zurich, NIG, Churchill and Fortis recorded a moderate deduction in their expense ratio
  • The average combined ratio of the top 10 UK motor insurers increased moderately
    • The average combined ratio of the top 10 motor insurers increased by 0.7 percentage points
    • Four insurers recorded an increase in their combined ratio
    • Six of the top 10 insurers recorded a reduction in their combined ratios in 2007
• Performance ratio benchmarking in UK pecuniary loss insurance
  • The average loss ratio of the top 10 UK pecuniary loss insurers decreased in 2007
    • The average loss ratio of the top 10 UK pecuniary loss insurers decreased by 2.3 percentage points in 2007
    • Only three of the top 10 UK pecuniary loss insurers improved their loss ratios in 2007
    • Allianz and Norwich Union saw the largest loss ratio increases in 2007
  • Six of the top 10 pecuniary loss insurers saw an increase in their expense ratios
    • The average expense ratio of the top 10 UK pecuniary loss insurers rose by 1.1 percentage points in 2007
    • Four of the top 10 UK pecuniary loss insurers achieved significant improvements in their expense ratios
    • AXA, UKI, St Andrews and Landmark saw the largest increases in their expense ratios in 2007
  • The average combined ratio of the top 10 UK pecuniary loss insurers improved moderately
    • The average combined ratio of the top 10 pecuniary loss insurers decreased by 1.2 percentage points
    • UKI and Direct Line were the only two players that achieved an improvement in their combined ratios and GWP growth
    • AXA saw the largest increase in its combined ratio among the top 10 UK pecuniary loss insurers
• Performance ratio benchmarking in UK property insurance
  • All top 10 property insurers saw their loss ratio increase in 2007 due to the summer floods
    • The average loss ratio of the top 10 UK property insurers increased by 23.1 percentage points
    • St Andrews, Direct Line, Lloyds TSB and Zurich experienced significant increases in their loss ratios
    • Six insurers returned loss ratios that were below the market average in 2007
      • Allianz and RSA achieved the smallest ratios in 2007, which were significantly below the market average
      • AXA, Churchill, Norwich Union and NIG achieved below average loss ratios, despite seeing large increases
  • The average expense ratio of the top 10 property insurers increased in 2007, with NIG and Direct Line recording the largest individual increases
    • The average expense ratio of the top 10 property insurers rose by one percentage point in 2007
    • Churchill, Lloyds TSB and St Andrews achieved expense ratio reductions
    • Seven of the top 10 property insurers witnessed their ratios deteriorate in 2007
      • NIG and Direct Line experienced the largest increases in their expense ratios
      • RSA, Zurich, AXA, Allianz and Norwich Union saw moderate increases to their expense ratios
  • All top 10 property insurers saw their combined ratio increase in 2007
    • The average combined ratio of the top 10 property insurers rose by 24.1 percentage points in 2007
    • Four insurers saw their combined ratios increase by more than 30 percentage points
    • Churchill and Allianz recorded moderate increases to their combined ratios
• APPENDIX
  • Definitions
    • Average
    • Earned premiums
    • Gross premium
    • Net premium
    • Written premiums
    • Loss ratio
    • Expense ratio
    • Combined ratio
  • Further Reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• List of Tables
  • Table 1: Premium income compared to change in loss ratio for the top 10 UK accident and health insurers, 2006-07
  • Table 2: Premium income compared to change in expense ratio for the top 10 UK accident and health insurers, 2006-07
  • Table 3: Premium income compared to change in combined ratio for the top 10 UK accident and health insurers, 2006-07
  • Table 4: Change in premium income compared to change in loss ratio for the top 10 UK liability insurers, 2006-07
  • Table 5: Change in premium income compared to change in expense ratio for the top 10 UK liability insurers, 2006-07
  • Table 6: Change in premium income compared to change in combined ratio for the top 10 UK liability insurers, 2006-07
  • Table 7: Combined ratio and accident year combined ratio, total motor market, 2003-07
  • Table 8: Premium income compared to change in loss ratio for the top 10 UK motor insurers, 2006-07
  • Table 9: Premium income compared to change in expense ratio for the top 10 UK motor insurers, 2006-07
  • Table 10: Premium income compared to change in combined ratio for the top 10 UK motor insurers, 2006-07
  • Table 11: Premium income compared to change in loss ratio for the top 10 UK pecuniary loss insurers, 2006-07
  • Table 12: Premium income compared to change in expense ratio for the top 10 UK pecuniary loss insurers, 2006-07
  • Table 13: Premium income compared to change in combined ratio for the UK top 10 pecuniary loss insurers, 2006-07
  • Table 14: Premium income compared to change in loss ratio for the top 10 UK property insurers, 2006-07
  • Table 15: Premium income compared to change in expense ratio among the top 10 property insurers, 2006-07
  • Table 16: Premium income compared to change in combined ratio among the top 10 property insurers, 2006-07
• List of Figures
  • Figure 1: New Hampshire and ACE recorded the largest improvements in their loss ratios in 2007
  • Figure 2: ACE and Norwich Union saw the largest improvement in their expense ratios in 2007
  • Figure 3: ACE achieved the largest decrease in its combined ratio, which was accompanied by GWP growth in 2007
  • Figure 4: Half of the top 10 UK liability insurers saw their loss ratios improve in 2007
  • Figure 5: All of the top 10 liability insurers recorded an increase in their expense ratios in 2007
  • Figure 6: AXA, Zurich and RSA recorded the largest improvements in their combined ratios in 2007
  • Figure 7: Motor insurers have become increasingly reliant on reserve releases to bolster their reported profitability
  • Figure 8: Six insurers recorded a decline in their loss ratio in 2007
  • Figure 9: Allianz' s expense ratio improved significantly in 2007
  • Figure 10: A number of insurers saw their combined ratios increase in 2007
  • Figure 11: The majority of the top 10 experienced a moderate increase to their ratios in 2007
  • Figure 12: Norwich Union and GEFI both achieved significant decreases in their expense ratios
  • Figure 13: Half of the top 10 UK pecuniary loss insurers achieved an improvement in their combined ratios in 2007
  • Figure 14: All top 10 property insurers saw their loss ratio increase in 2007 due to the summer floods
  • Figure 15: Lloyds TSB was the only insurer to improve its expense ratio and achieve GWP growth at the same time in 2007
  • Figure 16: All top 10 property insurers saw their combined ratio increase in 2007

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