Performance Ratio Benchmarking in UK Liability Insurance 2007

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
• ANALYSIS
  • The average loss ratio of the top 10 UK liability insurers rose by 9.7 percentage points in 2006, but Norwich Union and QBE recorded large reductions
    • The average loss ratio for the top 10 liability insurers rose by 9.7 percentage points in 2006
    • Norwich Union and QBE saw the largest improvements in their loss ratios
    • Zurich saw the largest deterioration in its loss ratio in 2006
  • The average expense ratio of the top 10 liability insurers increased by 3.2 percentage points in 2006, with New Hampshire recording the largest increase
    • The average expense ratio rose by 3.2 percentage points in 2006 to 30.5%
    • New Hampshire recorded the largest increase in its expense ratio but remained one of the most efficient players
    • Royal & SunAlliance, AXA and Allianz were the least efficient UK liability insurers in 2006
  • The average combined ratio of the top 10 UK liability insurers increased in 2006, with Zurich and AXA seeing the two biggest increases
    • The average combined ratio increased in 2006 by 12.9 percentage points to 102.1%
    • Norwich Union and QBE bucked the trend and recorded improvements in their loss ratios
    • Six of the top 10 UK liability insurers recorded combined ratios below 100% in 2006
    • Four insurers recorded combined ratios in excess of 100% in 2006
• APPENDIX
  • Definitions
    • Average
    • Total average
    • Earned premiums
    • Gross premium
    • Net premium
    • Written premiums
    • Loss ratio
    • Expense ratio
    • Combined ratio
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Tables
    • Table 1: Change in premium income compared to change in loss ratio for the top 10 UK liability insurers, 2005-06
    • Table 2: Change in premium income compared to change in expense ratio for the top 10 UK liability insurers, 2005-06
    • Table 3: Change in premium income compared to change in combined ratio for the top 10 UK liability insurers, 2005-06
    • Table 4: Liability premium income by competitor, top 20 UK liability insurers, 2005-06 (£000s)
    • Table 5: Loss ratio, top 20 UK liability insurers, 2005-06
    • Table 6: Expense ratio, top 20 UK liability insurers, 2005-06
    • Table 7: Combined ratio, top 20 UK liability insurers, 2005-06
  • List of Figures
    • Figure 1: Norwich Union achieved the biggest reduction in its liability loss ratio in 2006
    • Figure 2: New Hampshire saw the largest increase in its expense ratio in 2006
    • Figure 3: Most of the top 10 UK liability insurers saw their combined ratio deteriorate in 2006