Overview

Introduction

This profile contains an overview of Norwich Union' s personal general insurance business in the UK, focusing on product and distribution strategy in addition to the company' s performance in its key lines of business

Scope

• Unique data on Norwich Union' s UK personal insurance business, including premium income and performance ratios
• A combination of primary and secondary research, including FSA Returns, investor relations analysis, and advertising statistics

Reasons to Purchase

• Gain insight into Norwich Union' s corporate and personal lines strategy, along withthe insurer' s structure and focus
• Understand Norwich Union' s personal lines business through unique data and analysis

• CHAPTER 1 INTRODUCTION
  • What is this report about?
  • Who is the target reader?
  • How to use this report
• CHAPTER 2 NORWICH UNION: UK PERSONAL GENERAL INSURANCE COMPETITOR PROFILE 2006
  • Norwich Union is part of the Aviva Group and is the largest contributor to its general insurance business
    • Norwich Union Insurance is part of the Aviva group
    • Norwich Union is the largest contributor to Aviva' s worldwide general insurance premium income
  • Norwich Union' s personal lines book accounts for the majority of its general insurance business, and while motor and home have seen marginal growth since 2001, the insurer has made significant profits
    • Norwich Union' s general insurance book is weighted towards personal lines business
    • Norwich Union has seen slower growth in its household and private motor books than the overall market
    • Norwich Union' s household book grew marginally between 2001 and 2005, while the size of its private motor book remained fairly flat
    • Norwich Union' s profit before tax increased to £1.3 billion in 2005
    • Norwich Union recorded a strong set of results for the first half of 2006
  • Norwich Union' s key areas of focus are its Pay As You Drive motor insurance proposition and its roadside assistance product
    • Norwich Union launched Pay As You Drive motor insurance in 2006
    • Norwich Union is increasing premium rates in motor and has stopped quoting for third party cover online
    • Norwich Union aims to grow the personal membership of RAC Rescue by 800,000 by 2008
    • Norwich Union focuses its advertising budget primarily on motor and household insurance
    • Norwich Union spends the majority of its advertising budget on direct mail
  • Norwich Union follows a multi-distribution channel strategy
    • Corporate partnerships play a significant role in NUI' s personal lines distribution strategy
    • Norwich Union Direct has seen powerful growth between 2001 and 2005
    • Intermediaries are now the smallest distribution channel for personal lines insurance
    • Norwich Union aims to sell 600,000 new policies under the RAC Direct Insurance brand by 2008
  • Norwich Union will be continuing with its long-term strategy while focusing on the RAC businesses, Norwich Union Direct and Pay As You Drive in the near-term
    • Norwich Union' s longer term strategy is to be a multi-product, multi-channel insurance company
    • In the near-term Norwich Union will be focusing on the RAC businesses, Norwich Union Direct and the Pay As You Drive initiative
• CHAPTER 3 APPENDIX
  • Supplementary data
  • Methodology
    • Competitor data
      • GWP versus GEP reporting
      • Major changes in FSA Return categories and their impact
    • Market size
      • Changes in market size information
  • 2005 definitions for lines of business
    • Accident & health
    • Motor
      • Total private motor
      • Private motor comprehensive
      • Private motor non-comprehensive
      • Motorcycle
    • Property
      • Household and domestic all risks.
    • Financial/Pecuniary loss business
      • Total personal financial loss business
    • Total personal
    • Total commercial
  • Ratio analysis by competitor
  • Premium income measures
    • Earned premiums
    • Gross Premium
    • Net Premium
    • Written premiums
  • Research methodology
    • Datamonitor' s Personal Broker Survey
  • Current readings
  • Future readings
  • Do you need more information?
    • Datamonitor Financial Services Consulting
  • SPP writing team
  • List of Tables
    • Table 1: Aviva' s general insurance NWP by geography, 2005
    • Table 2: Split between personal and commercial business for Norwich Union, 2005
    • Table 3: Norwich Union' s growth rate and share of personal GWP by selected line of business compared to the market, 2005
    • Table 4: Norwich Union' s personal lines premium income split by line of business, 2001-5
    • Table 5: Key statistics relating to Norwich Union' s personal lines book, 2001-5
    • Table 6: Profit metrics for Norwich Union, 2001-5
    • Table 7: Norwich Union' s advertising spend by product, 2005
    • Table 8: Norwich Union' s advertising spend by media, 2005
    • Table 9: Norwich Union sources of personal lines premium income, 2001 and 2005e
    • Table 10: Do you enjoy dealing with any particular insurer?
  • List of Figures
    • Figure 1: Aviva is made up of five business streams
    • Figure 2: Norwich Union was by far the biggest contributor to Aviva' s general insurance business in 2005
    • Figure 3: Almost two-thirds of Norwich Union' s UK general insurance book was personal business in 2005
    • Figure 4: Norwich Union' s household book grew slower than the overall household market between 2001 and 2005
    • Figure 5: Strong growth in Norwich Union' s private motor and household books saw premium income rise back to 2001 levels in 2005
    • Figure 6: Norwich Union' s operating profit has increased every year between 2001 and 2005
    • Figure 7: RAC Rescue aims to acquire 800,000 more individual members by 2008
    • Figure 8: Norwich Union spent over half of its advertising budget on private motor insurance in 2005
    • Figure 9: A large proportion of Norwich Union' s advertising budget is spent on direct mail and TV advertising
    • Figure 10: The closure of Hill House Hammond has slashed Norwich Union' s intermediated business volumes
    • Figure 11: NUI has set an aim for RAC Direct Insurance to acquire 600,000 new policies by 2008
    • Figure 12: Norwich Union Insurance' s personal lines corporate strategy
    • Figure 13: Brokers particularly enjoy dealing with Zurich and Norwich Union