Insurers see increased volumes and profitability
The financial services sector in the United Kingdom has seen its fifth consecutive quarter of growth, according to the latest Confederation of British Industry or Price water house Coopers Survey of Financial Services.
Thirty-seven percent of companies surveyed reported an increase in turnover in the three months to September, although progress was “much slower” than expected.
With respect to life insurance, the survey said: “Optimism about the general business situation rose solidly, profitability increased rapidly during the third consecutive quarter, driven by particularly strong growth in business volumes and fees, commissions and premium income. ”
For general insurance “. Profitability rose modestly, boosted by an increase in spreads, and increased slightly faster than expected in the next three months”
Although in general the volume of insurance business fell unexpectedly, is expected to increase next quarter.
The insurance broker: “The volume of business and income from fees, commissions and bonuses rose at the fastest pace since March 2009, leading to an unexpected increase in profitability.”
Moreover, the growth of staff in the insurance sector was at its strongest in two and a half, and investment intentions for the coming year had “greatly strengthened.”
Price water house Coopers Survey insurance partner, Mark Stephen, said: “The general insurance sector has returned to profit for the first time in a year and is expected to increase further over the next three months.”
However, he warns: “The premium rates, particularly in commercial lines, are under pressure and turnover have fallen.”
He added: “There is also concern about competition within the sector and as a result of general insurance companies are shifting their focus to international growth plans in order to attract domestic customers.”