Tarw Coch
Member
- Location
- Bottom of Wats Dyke
On that basis, should the CEO of the mutual be getting 400-450k per year or should the CEO of Aviva be getting 22million
Nfu insurance - does anyone come back, is the grass really greener on the other side!?
- Thread starter Doing it for the kids
- Start date
The CEOs of the top companies ie AXA, Allianz are on about £10m, NFU is a minnow compared to these. These companies are answerable to their shareholders, who in reality is the NFU Mutual answerable to?
Over the long term, the management of NFU Mutual have done a far better job than those of Aviva or Axa. If you want to see corporate excess drop into the Parisian palace which serves as the HQ of Axa.
From my experience, I would say that NFU Mutual pays its CEO / CFO at the lower end (though not the bottom end) of other mid tier insurers.
Anyone suffering from envy should have tried a career in finance. It’s more competitive than inheriting a job from your parents and collecting your annual giro from Brussels.
I agree, have lots of friends who earn serious amounts most of them fund managers or corporate lawyers, wouldn’t want their jobs. Although one is in acquisitions and mergers which I would find quite interesting.
@NLF can you elaborate on what ‘doing a far better job’ actually equates to for the owners ie the policy holders who are paying the premiums? I’m not particularly for or against the NFU just interested in the machinations of it all. I am insured with them!
@NLF can you elaborate on what ‘doing a far better job’ actually equates to for the owners ie the policy holders who are paying the premiums? I’m not particularly for or against the NFU just interested in the machinations of it all. I am insured with them!
InsuranceLadyAmanda
Member
- Location
- Framlingham
If anyone is carrying out an insurance review then please do not hesitate to get in touch with me. I would of course be delighted to help as I am employed by www.agribrokers.co.uk as an independent insurance broker and can obtain quotes from all insurers on your behalf.
That is a great question and one that I had to think about. For Axa and Aviva the answer is easy. Success is long term shareholder returns which those management teams have miserably failed to deliver. For a mutual it’s a harder. As you point out the owner and customer are one and the same so profits are earned at the expense of the customer.
I would suggest success is providing suitable products and a decent service at reasonable prices whilst maintaining sufficient capital buffers to meet the extreme losses. Against this yardstick NFU Mutual does a decent job (unlike Equitable Life who for years offered the best pricing but were ultimately unable to meet their financial commitments).
NFUM’s underwriting track record is decent, profitable but not egregiously so. Efficiency levels look fine versus industry peers (e.g. the agency network costs approx 12% of gross written premium which is considerably cheaper than the 15-30% commission that a broker typically earns). For the past 10 years the vast majority of profits have been returned to members via the “mutual bonus”.
Some will disagree with me, but I usually find their pricing competitive. There is a distinction between reasonable pricing and best pricing. Reasonable pricing is underwriting risks appropriately, being prepared to turn away riskier business or those with a poor claims history (there appear to be some particularly accident prone individuals on TFF).
If I had to criticise NFUM, it’s that they appear overcapitalised versus commercial insurers and could afford to increase the mutual bonus.
As for mergers and acquisition, I used to do that and it was really crap, like being buried alive, and the money, at least at the junior level was not nearly as good as you’d imagine.
Steevo
Member
- Location
- Gloucestershire
Well.....my NFU Mutual insurance renewal arrived recently - year 2 premium has risen by only 1.1%, and contains further cover than last year due to a few extra additions.
I was expecting the usual 2nd year jump from NFU Mutual but am extremely pleasantly surprised.
I was expecting the usual 2nd year jump from NFU Mutual but am extremely pleasantly surprised.
I like the Nfu, but when I was away in the summer my insurance ran out and I needed to get another quote from them... £100+ less for the same cover...
Steevo
Member
- Location
- Gloucestershire
Ran out?!
It's variable quality depending on the agent and their business model I find.
Often renewal documentation from most insurance companies is only sent out 2 weeks before renewal which is poor (and most likely intentional!) as it rarely gives enough time to get a second quote......but I've never heard of anyone's insurance running out before.
Impressively my NFU Mutual agent has sent the paperwork almost a month before. Top marks for service from me.
Northeastfarmer
Member
- Location
- Cleveland
H+H beat the nfu hands down this time
I was up in Iceland when they were trying to get hold of me for paying the renewal.
4course
Member
- Location
- north yorks
road vehicles i.e cars and truck far cheaper elswhere but farm machinery and business cover less and better cover with nfu ive found. Just had a claim over 4000 on a tractor electrical fire paid settled without a lot of hassle although I did whinge about an extra excess for electric fault especially as we pointed out that had we stood back and let the machine burn they could well have been paying out 10 times that
Doing it for the kids
Member
Just had a fuel issue in a digger that we have put down to suspicious circumstances.
Quote was 5k to fix it.
Engineer came out a few day’s after the call, it was approved the same day.
They may be expensive but they do perform when you need them too
Quote was 5k to fix it.
Engineer came out a few day’s after the call, it was approved the same day.
They may be expensive but they do perform when you need them too
Steevo
Member
- Location
- Gloucestershire
Never heard of them until I saw your post.
Seems to be 101 different insurance companies setting up at the moment.
That said, there are only so many underwriters behind the scenes so brokers are often providing similar (admin) services.
We were with Cornish Murtual for 30+ years, gave very good service and dealt with claims quickly....but, their prices were increasing quite substantially. We got some quotes from NFU and MVF both very competitiv, went back to CMA who would not budge on price, their answer was to reduce the price have a higher excess or less cover. very disappointed!! We moved to Mole Valley farmers who had better cover than NFU, even cover the sheep for MV breakdown.
- Tags
- nfum