112 Relationship Marketing
1989 1990 1991 1992
Gross premiums 66.0 84.1 124.4 213.2
Reinsurance premiums (1.6) (1.8) (3.3) (4.0)
Net premiums written 64.4 82.3 121.1 209.2
Increase in unearned premium (9.9) (10.1) (25.9) (53.6)
Premiums earned 54.5 72.2 95.2 155.6
Investment income 5.7 7.8 10.5 11.7
Realized gains less losses (0.1) – – –
on disposal of investments
60.1 80.0 105.7 167.3
Gross claims 36.2 54.1 73.0 117.5
Reinsurance recoveries (0.5) (4.4) (4.6) (2.3)
Net claims incurred 35.7 48.7 68.4 115.2
Expenses 19.9 26.2 32.6 44.7
Increase in deferred (0.5) (0.5) (2.5) (5.4)
acquisition expenses
55.1 75.4 98.5 154.5
Underwriting result – transfer 5.0 4.6 7.2 12.8
to consolidated Profit and
Loss Account
60.1 80.0 105.7 167.3Consolidated profit and loss account, 1989–92 (£m)
1989 1990 1991 1992
Investment income 3.3 4.7 4.7 6.1
Realized gains less losses on (0.1) – – –
disposal of investments
Underwriting result 5.0 4.6 7.2 12.8
Other income 1.5 1.3 2.4 4.0
9.7 10.6 14.3 22.9
Other expenses (1.8) (1.3) (0.6) (1.8)
Profit before CEO bonus 7.9 9.3 13.7 21.1
Provision against investments 0.2 (0.2) – –
charged (1989 released)
Bonus payable to CEO – – (1.6) (6.0)
Profit before taxation 8.1 9.1 12.1 15.1
Taxation (3.2) (3.3) (3.1) (4.4)
Profit after taxation 4.9 5.8 9.0 10.7
Dividend paid/proposed (1.8) (2.7) (2.4) (4.5)
Retained for the year 3.1 3.1 6.6 6.2Figure 2.5.1 Parent company revenue account, 1989–92
Source: Annual Reports