General Insurance Article - Insurers see £19bn profit decline from pre-crash high

 General insurers saw around £19bn (25%) profit fall in 2011 from a pre crash 2007 industry high, according to PwC research. With the reporting season upon us, insurers, shareholders and analysts alike, will be hoping for a stronger financial performance from 2012.

 Jonathan Howe, UK insurance leader, PwC, said:

 “Insurers have clearly had a difficult time, post the financial crash. 2011 marks a historic low point for the industry. Low investment returns, regulatory uncertainty and slow economic growth have put huge pressure on insurers' financial performance.

 “2012’s results should hopefully start to reflect the hard work that has been put in since the crisis; a focus on underwriting quality, cost control and making capital work more efficiently will start to come through to the bottom line.

 “Pre-crash profit highs are still a long way off, but we are confident that insurers who have adapted to these changing conditions will reap the benefits”