22 March, 2012
South West rural insurance firm Cornish Mutual has seen an
increase in its gross written premiums of 7 per cent to £17.6
million during its last financial reporting period, it has been
announced today.
Ahead of the company's Annual General Meeting (AGM) later this
month (Thursday 29 March), the insurer says the income and costs
during 2010/11 were both 'favourable' against targets set for the
business at the beginning of their financial year.
Cornish Mutual's Financial Statement for the year end 30
September 2011 shows that gross written premiums increased by 7 per
cent to £17,612,588 (2010: £16,463,355) with a technical surplus of
£5,049 (2010: £291,570). Profit-after-tax is listed as £336,221
(2010: £2,040,537).
Headlines:
• Gross written premiums increased by 7% to £17.6m (2010:
£16.46m)
• Gains on investments reduced by £1.59m to £732,000 (2010:
£2.33m)
• Ratio of operating expense to gross written premiums
increased to 22% from 20%
• Profit after tax of £336,221 (2010: £2,040,537).
The adverse market conditions at the end of September 2011 left
Cornish Mutual with unrealised losses of £551,927 (2010: £625,202)
on its investment portfolio which contributed the majority of the
reduction in investment returns.
2011 saw Cornish Mutual complete the second year of its
reinsurance contract with Ecclesiastical. The reduced volatility in
technical profit gained through the arrangement is one pillar of a
strategy to see the business grow through the development of its
services and products.
Ian Pawley, Cornish Mutual's chairman is expected to address the
AGM being held at Sandy Park Conference and Banqueting Centre in
Exeter at 10.30am on Thursday 29 March.
Ahead of the event, Mr Pawley said: "During a period of
unparalleled uncertainty in the financial markets and elsewhere,
the Board has continued to develop the company, focusing its
efforts on services to Members. The financial results show that the
company is growing, recruiting new Members, as well as ensuring our
existing Members remain satisfied with our offering.
"2011 has been a busy year with investment in new systems and an
increase in headcount to gain the requisite skills and knowledge to
develop our business."
At the AGM, seven existing board members, Leslie Baker, Gerald
Blewett, Peter Beaumont, Chris Down, Jilly Greed, Michael Grigg and
Ian Pawley will be standing for re-election. This takes place every
three years, until they have each served nine years. Thereafter,
they will need to seek re-election annually.
As Cornish Mutual is a mutual organisation all its 24,000
Members from across Cornwall, Devon, Somerset and Dorset have a
right to attend the AGM and EGM or vote by proxy.
Ian Pawley added: "The company will continue to focus on the
agricultural and rural sector, supporting Members' interests
directly via the principal and one day agricultural shows, support
for the YFC organisations in the four counties, and by charitable
donations to bodies associated with the rural sector.
"There are considerable challenges on the horizon both from a
regulatory perspective and the local marketplace which remains
exceedingly competitive. However, our intention is that we will
continue to be a business which is totally focused on providing a
first-class service to our Members."
There will also be an Extraordinary General Meeting (EGM)
following the AGM to amend the Memorandum and Articles of
Association of Cornish Mutual to reduce the amount of paperwork the
Company sends each year. In future years, Cornish Mutual intends to
make some documentation available online and only provide hard
copies of accounts on request.
