Intermediary-only insurer, MMA Insurance plc (MMA) has reported a fourth year of consistent financial growth. 2006 saw continued growth in its non motor portfolio and, for the first time, these classes grew to over 50% of Gross Written Premium (GWP), achieving an important milestone in the company’s strategy to balance its portfolio.

• 2006 top line income increased by 5.7% to £217m
• Profit before tax of £17.5m
• A pre-tax return on equity of 21%
• Maintained a market-leading expense ratio of 8.3%

MMA’s strategy of broadening the mix of classes in its portfolio is progressing. Non motor business represented 52% of GWP in 2006 with Motor dropping from 56.7% in 2004 to 48% in 2006. Household and Commercial Property delivered strong premium growth, exceeding 20% for both classes.

Commenting on the 2006 results Garry Fearn, Chief Executive of MMA, said: “Once again, our focus on supporting intermediaries has delivered a healthy performance.

“2006 was a year of significant investment in our underwriting and service capabilities. The result has improved direct access for intermediaries to underwriting expertise and, through wider use of broker technology solutions, we have made it easier for them to do business with us.

“Offering competitive products and specialist underwriting expertise we have been able to exploit intermediary dominance in the commercial lines and continued growth is particularly pleasing.”

Commenting on the performance of MMA’s private motor book, Garry Fearn said: “With the continuing down turn in this market we deliberately scaled down motor exposure in 2006. Our rating sophistication and flexible business model enabled us to manage this downturn effectively. We are now taking advantage as the cycle takes an upward turn.”

An expanded product range and improvements to functionality saw continued growth in the usage of Broker Online, MMA extranet distribution service. Increasing proportions of commercial business is now being processed through the service, in some classes over 80%. During the year MMA has also expanded its electronic distribution with a number of the specialist broker software houses.