MMA posts £12.1m profit in final results before merger

MMA Insurance recorded pre-tax operating profit of £12.1m in its 2011 annual results, up from £0.3m in the prior year period.

In addition, the group saw its combined operating fall to 99.6% from 105.9%.

Gross Written Premium was selectively increased to £230m from £220m, reflecting tough rating action on the MMA private car account, where volume reduced, but balanced by growth elsewhere.

The successful turnaround of the private car account contributed approximately 50% of the profit, while the planned development of Commercial Lines made good progress, particularly bespoke SME business written in the regional network, the firm said.

The motor booked COR was 96.7%, while the Home segment also achieved a COR under 100% (97.9%).

The results are the last to be issued before the business is merged with Provident Insurance to form a new entity, Covéa Insurance, in the final quarter of 2012.

MMA chief executive officer Garry Fearn commented: "2011 was a very successful year for MMA Insurance and we were delighted to see our determined action on the Private Car and Commercial Vehicle accounts in 2010 translate into a strong positive return.

"For MMA as a broker insurer, the development of Commercial Lines is strategically important and with a maturing regional office network substantial growth was achieved in a depressed market without compromising our underwriting discipline. Particularly pleasing was our progress with Schemes and MGA arrangements which represent a true insurer and broker partnership.

"Home is also a major account for us and against market trends we achieved rating increases in this area, whilst continuing to grow the business mainly through our affinity relationships.

"We look forward to 2012 and our transition into Covéa Insurance with great confidence. We attribute our success to not just working closely with our selected distribution partners but listening to their needs and those of their customers. I believe this focus is quite unique in the market."