Flood Re has backed 127,326 policies since it was launched on 4 April 2016, while benign weather has resulted in only a few claims being made through the specialist flood insurance scheme.
In its annual report, Flood Re revealed that it made a pre-tax profit of £130 million in its first year of operation, having collected £180 million in levy income and a gross written premium of £28 million. Its operating and administrative expenses were £15.7 million. Its invested and liquid assets were £157 million and its net assets were £98 million.
Andy Bord, chief executive of Flood Re, said: “We’re encouraged by the number of policies that we have backed since launch and the significant increase in both affordability and availability of flood insurance.”
“Additionally, Flood Re’s profitability demonstrates careful management of the Scheme and will allow us to build up its reserves for future flooding events and reduces the likelihood of having to call an additional levy. Although there have not been any events on the scale of the 2015-16 winter flooding since Flood Re’s launch, we remain ready for the future.”
Recent research revealed that four out of five householders with previous flood claims saw a reduction in the price of available quotes of more than 50% since Flood Re was launched.
They also revealed that, before the introduction of Flood Re, only 9% of householders who had made prior flood claims could get quotes from two or more insurers, with none being able to get quotes from five or more.
Now, 95% of those households that had previously made flood claims have access to two or more quotes and 84% can get quotes from five or more insurance providers.