Groupama sees profits fall despite a rise in revenue

Groupama Insurances reported a 6% increase in revenue for 2008 from £408m in 2007 to over £432m. However, the French mutual also reported a £4.6m drop in pre-tax profits from £23m in 2007 to £18.5m last year.

Groupama's CEO Francois-Xavier Boisseau put the drop in profit down to a rise in fraudulent claims on top of difficult trading conditions.

He added: "It has been a tough year for underwriting and investment and our profits have dropped as a result. One of the key drivers was a significant inc