Merc. Mutual and C.U.A. improve

Press, 18 September 1976, Page 14

Merc. Mutual and C.U.A. improve

NZPA Sydney The over-all improvement in the insurance industry’ was again reflected in results from two of Australia’s leading insurance companies — Mercantile Mutual Insurance Company, Ltd, and the Commercial Union Assurance Company of Australia, Ltd. which is U.K.-owned. Mercantile Mutual raised net profits from sAustlo9,ooo to a record $3.7M, while the C.U.A. swung from a SI.3M loss to a SI.OM profit in the past financial year. However, while Mercantile Mutual’s recovery was primarily caused by an improvement. in the group’s underwriting business, the C.U.A. increased its underwriting loss from SB.7M to $9.6M. The insurance industry in general suffered heavy underwriting losses in 1974-75 because of Cyclone Tracy, and a large number of storms.

But in the past year Australia has been relatively free of natural disasters, and this peace has shown up already in results from F.A.I. Insurances, Ltd, and The New Zealand Insurance Company, Ltd, which were heavy losers from Cyclone Tracy. Mercantile Mutual made an underwriting profit of $548,000, compared with a loss of $3.7M previously.