Vero New Zealand – underlying performance improves
Vero New Zealand is a leading player in the New Zealand general insurance market offering a comprehensive range of personal, corporate and commercial insurance and risk management products. Vero New Zealand's specialist insurance and risk management companies collectively account for 24% of the market.
Vero's mission is to be a world-class Kiwi general insurance company that loves to help and protect the people and businesses of New Zealand.
That mission is being well tested following major earthquakes and significant aftershocks in the Canterbury region of the South Island during the year.
Over 22,000 earthquake‑related claims have been lodged with Vero or our joint venture company, AA Insurance. Despite continuing aftershocks in Canterbury, Vero has still managed to assess and finalise claims, as well as complete some rebuilding.
We have a team of more than 45 employees working from new premises in Christchurch.
Vero is working closely with government authorities and has also appointed a leading New Zealand joint venture, MWH Mainzeal, to oversee rebuilding. By the time work is completed, Vero and its reinsurance partners will have injected more than $2 billion into the Canterbury Region.
Improved performance
As a result of the earthquakes, additional reinsurance needed to be purchased and this had a severe impact on Vero's results. Despite this, the underlying performance improved on the previous year. GWP increased 8.4% in NZ dollar terms as a result of premium increases and new business. The underlying ITR also improved.
Vero is highly regarded by brokers and customers. For the second year in a row, we were voted Insurer of the Year by members of the Insurance Broker's Association of New Zealand. This is the sixth time we have won this award.
The year ahead
Recovery from the Christchurch earthquakes will be protracted and we will continue to devote the resources needed to rebuild businesses and communities. We will also work with government, businesses and communities to address insurance affordability and capacity issues, as well as earthquake mitigation.
Insurance prices across New Zealand will rise in the coming year due to greater risks and higher claims and reinsurance costs. We are gradually changing premiums and underwriting conditions to reflect these higher risks and costs, particularly with earthquake cover.
Vero will focus on improving the efficiency of its claims management processes and reducing claims costs through dynamic risk selection and supplier relationships. We also plan to increase sales through our partnerships, as well as strengthening our longstanding broker relationships.
