Fortis UK splits from Fortis Group
Fortis UK profit fell 27% in the first half of 2009 to £31.7 million despite a 7% rise in non-life premium income.
The firm blamed the drop on cold weather in the first quarter which caused a flurry of household insurance claims, coupled with increased personal injury motor claims and lower investment income.
Barry Smith, CEO, said the performance was “robust” given market conditions.
“At Fortis, we continue to respond to these conditions through our disciplined underwriting strategy, implementing rate increases and targeting poor performing segments,” Smith said.
The insurer announced that Fortis UK will split into a separate operating division within the Fortis Group, becoming one of four divisions in its global structure.
Previously, Fortis UK was part of the company’s European division.
“This move reflects the fact that the UK business is a key part of the group’s future strategic focus on growth and profitability and that the group is committed to the development of the UK business and market,” Fortis said in a statement.
Under the restructure, Barry Smith will report direct to Fortis Group CEO, Bart De Smet.
