Online car insurance news
14/03/2007

NU announces record profits after a tough year

Despite a tense year which has seen redundancies, price rises and some customers losing faith in its brand, online car insurance provider Norwich Union has reported record profits for 2006/7.

NU's parent company Aviva announced profits of £3.25bn, up 12 percent on last year, that were in large part due to the success of its UK businesses. Besides online car insurance, these include a spectrum of other services under the Norwich Union banner, including home, health, life and travel insurance, besides breakdown recovery firm RAC.

Norwich Union has been subject to a large-scale cost-cutting programme which will see 850 redundancies over the coming year made in the firm's Norwich offices alone.

Besides the money recouped by cost-cutting, NU's decision to increase the price of its motor insurance has undoubtedly added to this year's profits. It prompted some drivers to leave the firm, but the majority were content to stay put at the new rates.

"The increase varied from 5 percent to 40 percent in some cases," said a Norwich Union Insurance spokesman. "Most of those whose premium rose by 40 percent left us, but those whose increase was less have on the whole not."

 

 

 

 

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