Truro-based rural insurance firm Cornish Mutual has reported a dip in profits.
For the financial year ended September 30, the company posted an after tax profit of £336k, down from £2M in 2010.
The adverse market conditions also left Cornish Mutual with unrealised losses of £551.9k (2010: £625.2k) on its investment portfolio which contributed the majority of the reduction in investment returns. Gains on investments were reduced by £1.59M to £732k.
Gross written premiums increased, however, up 7% to £17.6M.
Chairman Ian Pawley, who is expected to address the company’s AGM in Exeter next week, commented: “During a period of unparalleled uncertainty in the financial markets and elsewhere, the board has continued to develop the company, focusing its efforts on services to members.
“The financial results show that the company is growing, recruiting new members, as well as ensuring our existing members remain satisfied with our offering.
“2011 has been a busy year with investment in new systems and an increase in headcount to gain the requisite skills and knowledge to develop our business.”
At the AGM, seven existing board members – Leslie Baker, Gerald Blewett, Peter Beaumont, Chris Down, Jilly Greed, Michael Grigg and Pawley will be standing for re-election. This takes place every three years, until they have each served nine years. Thereafter, they will need to seek re-election annually.