Viewpoint: A tale of contrasting fortunes

Since it began reporting quarterly results three years ago, it recorded its first quarterly loss in the fourth quarter of 2009 as personal injury claims soared by £448m, something not helped by one of the coldest winters since the 1960s. The firm's combined operating ratio climbed from 93.6% to 105.9% and net claims rose 20%: the scale that once made it so attractive and expensively priced has now come to undermine it and it is hard to see there being no redundancies as a result.

Meanwhile, RBSI's partnerships and broker segment, NIG, declined by 10%, 'in line with business strategy'. The group has great brands and will bounce back. Did it ask for too much money when it was trying to sell in 2008? Probably.

RBS's fortunes in 2009 contrast markedly with Gibraltar-based Markerstudy, which has snapped up Zenith and is in the running for Provident. It has kept to niches predominantly, thereby avoiding much of the cutthroat competition in motor lines: the company is set to gain as motor rates rise (see The PB Interview pp.24-7).

Motivation, recognition, engagement
On the back of The National Management Salary Survey (see p.9), Ruth Spellman, chief executive officer at the Chartered Management Institute, warns that "employers must concentrate on building remuneration packages with development opportunities, offer flexible approaches to work and recognition of the need to better engage with staff". Her comments ring especially true in the insurance profession, one in which staff turnover is higher than the national average, though so are salary increases. Broker managers are well advised to take note.

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