Page 42 - Neal and Massy Holdings Annual Report 2012

40 2012
United Insurance Company Limited’s (United) financial
performance improved significantly in 2012 mainly due to the
performance of its Caribbean Direct Insurance business. The absence
of any catastrophes for the year (compared to 2011, when the
organization was impacted by claims from three hurricanes) and
the improved loss experienced in the Motor and Accident lines
of business propelled a reversal of fortunes in Caribbean Direct
business.
In 2012, the Board of Directors of United made the decision
to discontinue the organisation’s involvement in the international
Inward Reinsurance line of business, to allow United to focus on
increasing its ability to deliver sustainable, profitable growth from
the Caribbean Direct business. United is in the process of run-off
from all sources of the inward business. The losses in that portfolio
and the one-off extraordinary expenses associated with terminating
contracts and closing operations led to a significant loss in this area of
the business in 2012. Nonetheless, United contributed a respectable
$26.4 million in Operating Profit to the Group’s bottom line.
Despite incurring a loss in 2011, United successfully re-affirmed its
AM Best A- (Excellent) rating in July 2012 for the eighth consecutive
year. Re-affirmation was largely based on the financial strength of
its parent company, the decision to exit the Inward Reinsurance
United Insurance improved its accessibility to its customer base by adding
a branch on the West Coast of Barbados. The new location is more
convenient for customers on theWest Coast, who can nowuse the branch’s
videoconferencing technology to “meet” with underwriters at its Lower
Broad Street Office. Clients can receive sound advice, arrange newpolicies,
pay their premiums, request quotes and submit claims without having to
travel to the company’s Bridgetown office.
business and its ability to secure high quality reinsurance support
for its Caribbean Direct insurance book.
United’s management team continued to focus on intimately
understanding its business across the region and on implementing
actions tabled from a detailed review of its Caribbean Direct business,
including: (1) Creation of a standardized model for managing the
governance and performance of branches and agencies; (2) Review
of marketing and channel management initiatives; (3) Development
of an appropriate business model for our operations in Curacao;
and (4) Development of specific growth strategies for key markets
including the introduction of products and channels which not
only meet our customers’ needs, but which also inspire and amaze
them. The introduction of an insurance Kiosk at the Sunset Crest
Mall in Barbados which, using video conferencing technology to
allow customers to do business directly with the Head Office in
Bridgetown, is only the beginning.
While the company is pleased with the turnaround in its
financial performance, it recognises that there is still a need for
improvement to take its performance to a new level. Towards this
end, the company is improving its internal business processes and
pursuing increased use of technology. The company has substantially
completed the implementation of new General Ledger Accounting
INSURANCE BUSINESS UNIT