Cirencester Friendly – the income protection insurer has reported a five percent growth in membership and 6.6 percent growth in net premium collection for the year 2010.
Premium earned during 2010 was reported at £12.1 million while investment income till 31 December 2010 was reported at £3.98 million by the firm.
It had been a “successful 2010 for both the society and its members”, said Paul Hudson, chief executive of Cirencester.
The mutual was able to pay higher bonuses to members despite impending changes in capital requirements due to Solvency II and the Retail Distribution Review (RDR) procedures.
“Last year saw continued growth in premium income and a strong performance in our investment portfolio, as well as an increase in membership”, said Mr. Hudson.
Commending the company’s performance, Mr. Hudson said: “In what has been, and continues to be, a tough global economic situation and a year of political upheaval in the UK, it is very encouraging to see such positive performance”.
Mr. Hudson attributed avoidance of unnecessary risk and prudent management practices to the income growth. “During a difficult time for all in the financial services industry, our prudent management and continued policy of avoiding unnecessary risk has again been justified”, he said.
“2010 saw us payout 94 per cent of claims eligible for consideration to the value of £2.7m in sick pay benefit”, he said while talking about claims settlement.
The firm maintained total transparency while reviewing claims, he said adding: “Our claims were published in a transparent and accessible way, something that we call on the whole industry to do.”
Cirencester was also making innovations to improve its underwriting process, he claimed saying: “Our continual evolution as a company is also illustrated by a number of innovations implemented by the company this year; namely, nurse screening”.