NFU Mutual
Encyclopedia
The National Farmers Union Mutual Insurance Society Limited, trading as NFU Mutual, is a UK registered mutual insurance composite. It underwrites more than £1 billion (2008) in annual premium in life and general insurance lines for rural communities within the UK. NFU Mutual is based in Stratford-upon-Avon
Warwickshire
. In contrast to insurance companies that are owned by their shareholders, NFU Mutual is owned by its policyholders.
Unlike most other UK insurers, NFU Mutual still uses a direct sales force. It has over 300 offices and over 5,000 staff and agents spread across the UK. This network enjoys a close relationship with the National Farmers Union
(NFU). In 1909 the NFU Mutual was formed to offer insurance as an inducement for farmers to join the NFU. Many of the agents double as local union representatives. Many agents are self employed and all are tied to NFU Mutual products. This direct sales force plays a major part in publicity campaigns and provide a valuable local service.
NFU Mutual has won many awards for the design of its products and customer service. Most of the mutual's general insurance products have a Defaqto 5-star rating (January 2009). Defaqto ratings are based on a detailed analysis of a product's features and benefits. In July 2008 NFU Mutual received the British Insurer Awards General Insurer of the Year and a Customer Service Prize reflecting the care shown to customers following the 2007 floods.
From 1980 the NFU Mutual has accepted risks from outside of the farming community. NFU Mutual Direct was set up in 1996 to provide telephone and internet call centre
services. The affiliate, Avon Insurance plc, provides personal protection and personal injury insurance.
NFU Mutual is currently engaged in a program to open new branches where NFU Mutual has never ventured before including Battle, in East Sussex; Southport, Merseyside; and Oxford city centre. A further ten are planned for 2010.
Lindsay Sinclair, the current CEO, joined NFU Mutual from ING Direct in autumn 2007. A New Zealander, aged 52, he is the first external CEO to be appointed at NFU Mutual. Ian Geden, his predecessor, was at NFU Mutual for more than 40 years.
NFU Mutual has strong financial solvency. It has assets of more than £10 billion and a Standard & Poor's
credit rating of 'AA' (as of February 2005). NFU Mutual has a very high retention rate. Each year some 95% of policyholders renew. This reflects excellent customer service, a responsive branch network and a policy rebate incentive. Underwriting is profitable. In 2008 the general insurance book paid out £86 for every £100 premium received. This reflects skilled underwriting with a limited appetite for risk. Acquisition costs are high, reflecting the costs and commissions inherent in maintaining the branch network. Net wrtten premium for general insurance grew by over 5% between 2007 and 2008.
Although originally providing insurance only for members of the National Farmers Union, the mutual diversified outside of the farming industry during the 1980s. Over half of the policies by number now originate outside of the farming community.
NFU Mutual currently only trades withn the UK, Channel Islands
and Isle of Man
. From 1948 to 1966 it offered insurance in Rhodesia
(now Zambia
and Zimbabwe
), Kenya
and Tanganyika
. In 1954 the NFU Mutual orchestrated the building of the new skyscraper
, Farmer's Mutual House, in Harare
.
Famous policyholders include David Lloyd George
, Aneurin Bevan
and Anthony Eden
.
The mutual celebrates its 100th anniversary in 2010 and has planned a number of events to commemorate the occasion. On the 4th of January 2010 the mutual unveiled an internal DVD featuring senior management performing a cover version
of the Peter Kay
version of the Tony Christie
song Is This the Way to Amarillo
. This publicised a company wide talent competition: "NFU Mutual's Got Talent" copying the format of Britain's Got Talent
. Also announced was a new book on the history of the mutual and a dinner for all members of staff.
As part of the 100th anniversary, NFU Mutual intended to double the bonus for one year only.
British Insurance Awards
July 2008 - Winner - General Insurer of the Year
July 2008 - Winner - Customer Care Award
July 2004 - Finalist - General insurer of the year
July 2004 - Finalist - Life insurer of the year
July 2003 - Winner - General insurer of the year
July 2002 - Winner - Customer care award
July 2000 - Finalist - Claims initiative of the year
July 1998 - Winner - Training initiative of the year
July 1997 - Winner - Risk management and technology initiative of the year
July 1997 - Winner - Life insurer of the year
Standard and Poor's Fund Awards
2006 - 1st - UK Individual Pension Funds over 10 years (Specialist group category)
2005 - 1st - UK Individual Pension Funds over 5 years (Smaller groups category)
2005 - 2nd - UK Individual Pension Funds over 10 years (Smaller groups category)
2004 - 1st - UK Insurance Funds over 5 years (Smaller groups category)
2004 - 1st - UK Insurance Funds over 10 years (Smaller groups category)
2004 - 1st - NFU Mutual Property Fund over 1 year (Pension Property Fund)
2004 - 1st - UK Individual Pension Funds over 5 years (Smaller groups category)
2004 - 2nd - UK Individual Pension Funds over 1 year (Smaller groups category)
2004 - 2nd - UK Individual Pension Funds over 10 years (Smaller groups category)
Auto Express
Awards
2006 to 2010 - Best Car Insurance Provider
Stratford-upon-Avon
Stratford-upon-Avon is a market town and civil parish in south Warwickshire, England. It lies on the River Avon, south east of Birmingham and south west of Warwick. It is the largest and most populous town of the District of Stratford-on-Avon, which uses the term "on" to indicate that it covers...
Warwickshire
Warwickshire
Warwickshire is a landlocked non-metropolitan county in the West Midlands region of England. The county town is Warwick, although the largest town is Nuneaton. The county is famous for being the birthplace of William Shakespeare...
. In contrast to insurance companies that are owned by their shareholders, NFU Mutual is owned by its policyholders.
Unlike most other UK insurers, NFU Mutual still uses a direct sales force. It has over 300 offices and over 5,000 staff and agents spread across the UK. This network enjoys a close relationship with the National Farmers Union
National Farmers Union (UK)
The National Farmers Union is a member organisation/industry association for farmers in England and Wales. It is the largest farmers organisation in England and Wales, and has over 300 branch offices.-History:...
(NFU). In 1909 the NFU Mutual was formed to offer insurance as an inducement for farmers to join the NFU. Many of the agents double as local union representatives. Many agents are self employed and all are tied to NFU Mutual products. This direct sales force plays a major part in publicity campaigns and provide a valuable local service.
NFU Mutual has won many awards for the design of its products and customer service. Most of the mutual's general insurance products have a Defaqto 5-star rating (January 2009). Defaqto ratings are based on a detailed analysis of a product's features and benefits. In July 2008 NFU Mutual received the British Insurer Awards General Insurer of the Year and a Customer Service Prize reflecting the care shown to customers following the 2007 floods.
From 1980 the NFU Mutual has accepted risks from outside of the farming community. NFU Mutual Direct was set up in 1996 to provide telephone and internet call centre
Call centre
A call centre or call center is a centralised office used for the purpose of receiving and transmitting a large volume of requests by telephone. A call centre is operated by a company to administer incoming product support or information inquiries from consumers. Outgoing calls for telemarketing,...
services. The affiliate, Avon Insurance plc, provides personal protection and personal injury insurance.
NFU Mutual is currently engaged in a program to open new branches where NFU Mutual has never ventured before including Battle, in East Sussex; Southport, Merseyside; and Oxford city centre. A further ten are planned for 2010.
Management
There are currently 13 people on the board of directors. Key individuals are:| Chief Executive | Lindsay Sinclair |
| Chairman of Board of Directors | Lord Curry of Kirkharle Donald Curry, Baron Curry of Kirkharle Donald Thomas Younger Curry, Baron Curry of Kirkharle, Kt, CBE, is a British farmer and businessman who is the current chair of NFU Mutual and non-executive chair of the Better Regulation Executive, and a member of the House of Lords On the recommendation of the House of Lords Appointments... |
| Finance Director | Kim Arif |
Lindsay Sinclair, the current CEO, joined NFU Mutual from ING Direct in autumn 2007. A New Zealander, aged 52, he is the first external CEO to be appointed at NFU Mutual. Ian Geden, his predecessor, was at NFU Mutual for more than 40 years.
NFU Mutual has strong financial solvency. It has assets of more than £10 billion and a Standard & Poor's
Standard & Poor's
Standard & Poor's is a United States-based financial services company. It is a division of The McGraw-Hill Companies that publishes financial research and analysis on stocks and bonds. It is well known for its stock-market indices, the US-based S&P 500, the Australian S&P/ASX 200, the Canadian...
credit rating of 'AA' (as of February 2005). NFU Mutual has a very high retention rate. Each year some 95% of policyholders renew. This reflects excellent customer service, a responsive branch network and a policy rebate incentive. Underwriting is profitable. In 2008 the general insurance book paid out £86 for every £100 premium received. This reflects skilled underwriting with a limited appetite for risk. Acquisition costs are high, reflecting the costs and commissions inherent in maintaining the branch network. Net wrtten premium for general insurance grew by over 5% between 2007 and 2008.
History
NFU Mutual was formed in 1910 by 7 local farmers as the Midlands Farmers Mutual Insurance Society Ltd., with working capital of just £190. It was formed to provide an inducement for farmers to join the NFU, which had been formed 2 years earlier. The provision of cheap insurance cover for NFU members contributed to the early growth of the NFU and NFU Mutual. Life insurance cover was introduced during the 1920s.Although originally providing insurance only for members of the National Farmers Union, the mutual diversified outside of the farming industry during the 1980s. Over half of the policies by number now originate outside of the farming community.
NFU Mutual currently only trades withn the UK, Channel Islands
Channel Islands
The Channel Islands are an archipelago of British Crown Dependencies in the English Channel, off the French coast of Normandy. They include two separate bailiwicks: the Bailiwick of Guernsey and the Bailiwick of Jersey...
and Isle of Man
Isle of Man
The Isle of Man , otherwise known simply as Mann , is a self-governing British Crown Dependency, located in the Irish Sea between the islands of Great Britain and Ireland, within the British Isles. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann. The Lord of Mann is...
. From 1948 to 1966 it offered insurance in Rhodesia
Rhodesia
Rhodesia , officially the Republic of Rhodesia from 1970, was an unrecognised state located in southern Africa that existed between 1965 and 1979 following its Unilateral Declaration of Independence from the United Kingdom on 11 November 1965...
(now Zambia
Zambia
Zambia , officially the Republic of Zambia, is a landlocked country in Southern Africa. The neighbouring countries are the Democratic Republic of the Congo to the north, Tanzania to the north-east, Malawi to the east, Mozambique, Zimbabwe, Botswana and Namibia to the south, and Angola to the west....
and Zimbabwe
Zimbabwe
Zimbabwe is a landlocked country located in the southern part of the African continent, between the Zambezi and Limpopo rivers. It is bordered by South Africa to the south, Botswana to the southwest, Zambia and a tip of Namibia to the northwest and Mozambique to the east. Zimbabwe has three...
), Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
and Tanganyika
Tanganyika
Tanganyika , later formally the Republic of Tanganyika, was a sovereign state in East Africa from 1961 to 1964. It was situated between the Indian Ocean and the African Great Lakes of Lake Victoria, Lake Malawi and Lake Tanganyika...
. In 1954 the NFU Mutual orchestrated the building of the new skyscraper
Skyscraper
A skyscraper is a tall, continuously habitable building of many stories, often designed for office and commercial use. There is no official definition or height above which a building may be classified as a skyscraper...
, Farmer's Mutual House, in Harare
Harare
Harare before 1982 known as Salisbury) is the largest city and capital of Zimbabwe. It has an estimated population of 1,600,000, with 2,800,000 in its metropolitan area . Administratively, Harare is an independent city equivalent to a province. It is Zimbabwe's largest city and its...
.
Famous policyholders include David Lloyd George
David Lloyd George
David Lloyd George, 1st Earl Lloyd-George of Dwyfor OM, PC was a British Liberal politician and statesman...
, Aneurin Bevan
Aneurin Bevan
Aneurin "Nye" Bevan was a British Labour Party politician who was the Deputy Leader of the Labour Party from 1959 until his death in 1960. The son of a coal miner, Bevan was a lifelong champion of social justice and the rights of working people...
and Anthony Eden
Anthony Eden
Robert Anthony Eden, 1st Earl of Avon, KG, MC, PC was a British Conservative politician, who was Prime Minister from 1955 to 1957...
.
The mutual celebrates its 100th anniversary in 2010 and has planned a number of events to commemorate the occasion. On the 4th of January 2010 the mutual unveiled an internal DVD featuring senior management performing a cover version
Cover version
In popular music, a cover version or cover song, or simply cover, is a new performance or recording of a contemporary or previously recorded, commercially released song or popular song...
of the Peter Kay
Peter Kay
Peter John Kay is an English comedian, writer, actor, director and producer. His work includes That Peter Kay Thing , Phoenix Nights , Max and Paddy's Road to Nowhere , Britain's Got the Pop Factor... and other independent productions which have included two sell out tours.-Early career:Peter Kay...
version of the Tony Christie
Tony Christie
Tony Christie is an English musician, singer and actor. He is best known for his track, "Is This The Way To Amarillo", a double UK chart success.-Career:Tony Christie has sold over 10 million albums Worldwide...
song Is This the Way to Amarillo
Is This the Way to Amarillo
In the United States, a version by the writer of the song Neil Sedaka made to number 44 in the Billboard charts in 1977, and the title was shortened to "Amarillo".-Tony Christie featuring Peter Kay version:...
. This publicised a company wide talent competition: "NFU Mutual's Got Talent" copying the format of Britain's Got Talent
Britain's Got Talent
Britain's Got Talent is a British television talent show competition which started in June 2007 and originated from the Got Talent series. The show is produced by FremantleMedia's TalkbackThames and Simon Cowell's production company SYCOtv. The show is broadcast on ITV in Britain and TV3 in Ireland...
. Also announced was a new book on the history of the mutual and a dinner for all members of staff.
Mutual bonus
As the NFU Mutual does not have shareholders, a large proportion of its profits are returned to customers in the form of a discount off the premiums of renewing customers. The discount ranges from 6% - 10% depending on the number of years that the policyholder has been using the mutual.As part of the 100th anniversary, NFU Mutual intended to double the bonus for one year only.
Awards
Some of the awards and recognitions won by NFU Mutual include:British Insurance Awards
July 2008 - Winner - General Insurer of the Year
July 2008 - Winner - Customer Care Award
July 2004 - Finalist - General insurer of the year
July 2004 - Finalist - Life insurer of the year
July 2003 - Winner - General insurer of the year
July 2002 - Winner - Customer care award
July 2000 - Finalist - Claims initiative of the year
July 1998 - Winner - Training initiative of the year
July 1997 - Winner - Risk management and technology initiative of the year
July 1997 - Winner - Life insurer of the year
Standard and Poor's Fund Awards
2006 - 1st - UK Individual Pension Funds over 10 years (Specialist group category)
2005 - 1st - UK Individual Pension Funds over 5 years (Smaller groups category)
2005 - 2nd - UK Individual Pension Funds over 10 years (Smaller groups category)
2004 - 1st - UK Insurance Funds over 5 years (Smaller groups category)
2004 - 1st - UK Insurance Funds over 10 years (Smaller groups category)
2004 - 1st - NFU Mutual Property Fund over 1 year (Pension Property Fund)
2004 - 1st - UK Individual Pension Funds over 5 years (Smaller groups category)
2004 - 2nd - UK Individual Pension Funds over 1 year (Smaller groups category)
2004 - 2nd - UK Individual Pension Funds over 10 years (Smaller groups category)
Auto Express
Auto Express
Auto Express is a weekly motoring magazine sold in the United Kingdom published by Dennis Publishing. The Editor-in-Chief is Steve Fowler.Launched in September 1988, its 1000th issue was published on 20 February 2008. It's only weekly competitor in Britain is the long established Autocar...
Awards
2006 to 2010 - Best Car Insurance Provider
External links
- www.nfumutual.co.uk
- www.nfumutual-agencies.co.uk
- The Stratford Guide NFU Mutual's Head office is on Tiddington Road in Stratford Upon Avon. For more information on Stratford-Upon-Avon visit The Stratford Guide.