FARMER members of NFU Mutual are in for cheaper premiums, after it notched-up profits of over £1billion for 2016.

Benign weather and a strong investment performance helped deliver profits of £1026million. As a result, the rural insurer is to 'significantly' increase the bonus given to its members.

In a very good year for stock markets and commercial property, the Mutual also made substantial investment gains and overall investment assets under management by the group increased by £2.5bn in 2016 to £18.8 bn.

Group chief executive Lindsay Sinclair said: “The very solid results for both the general insurance and life sides of the business have put us in a great position to continue to build on our financial strength during a period of ongoing uncertainty in the current market. Because we are a mutual, running our business in the long term interest of our members, we’ll be sharing our financial success with our members.

“All our general insurance customers – around a million people with farms, businesses, homes and cars insured with us – will see a significant increase in our bonus payment, which comes in the form of a discount off renewal premiums," said Mr Sinclair. “It’s a very important way of showing our appreciation of our customers’ loyalty to the business."

The new rates will come into effect from July.