09 Jan, 2008
Phillipps - 08-Jan-2008
NFU Mutual says renewing customers will see annual general
insurance premiums reduced by between 6 per cent and 10 per cent
The mutual says despite a difficult year, which saw it pay out a
record £112m in flood claims in 2007, the savings are being
passed on through its mutual bonus scheme.
The scheme, which was launched in 2000, is expected to payout over
£80m in total this year.
The size of the payouts received will depend on how long customers
have insured with the firm. Individuals making their fifth or more
renewal will receive a payout cutting their premium by 10 per cent.
This falls to 9 per cent for customers making their fourth renewal,
8 per cent for their third renewal, down to six per cent for a
NFU chief executive Ian Geden says: "Although last year was
the worst for flooding claims in our 98-year history, our
underlying financial strength means we can continue to return money
to loyal customers through mutual bonus discounts.
"As there are no shareholders taking profits from the
business, NFU Mutual set up its mutual bonus scheme to enable
policyholders to benefit in years when its investment returns and
claims experience allowed."