Home insurers’ underwriting profits increase

The figures compiled by the business advisory firm also showed that the COR had improved by 10% since 2010 when it hit 99%. This meant 2011 was the fourth consecutive year when home insurance premiums either met or exceeded the cost of claims and expenses.

The size of the market was broadly stable at £6.5bn.

The firm noted however that the last year to experience widespread flooding was 2007 when the net COR for home insurance reached 120%.

James Rakow, insurance partner at Deloitte, said: "At