The United Kingdom’s flood reinsurance scheme Flood Re will reduce premiums charged to insurers from next year.

The government-backed scheme, which imposes an annual levy on insurers and carries the flood risk part of property premiums, is considering a range of reductions in premiums charged for buildings and contents policies.

Flood Re decided not to pass on an annual premium increase in April, with CEO Andy Bord saying careful management has led to the build-up of good reserves. He says the scheme is well-placed to respond to future natural disasters.

Four out of five households with a prior flood claim saw price reductions of more than 50%, according to Flood Re’s annual report.

Its gross written premium has increased from £28 million ($49.97 million) to £32 million ($57.11 million), with an increase in investments to £257 million ($458.67 million).