Life insurance companies saw a sharp drop in profitability in Q4 2009, despite higher new business values for the first time in over two years.
UK insurers reported a 76% drop-off in profitability for the quarter on balance - the percentage swing between firms reporting an increase and those reporting a decrease - according to a survey by the Confederation of British Industry (CBI) and PricewaterhouseCooper (PwC). Record increases in average spreads were dragged down by record falls in average fees, commissions and premiums. In the general insurance market, optimism rose for a fifth successive quarter, up 54% on balance, despite further falls in business volumes, values and profitability. Interest, investment or trading incom...
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