We may be edging towards the end of the insurance results period, but with a couple of major insurers still to report esure has placed down a marker that may be hard to top.
The UK insurer has today revealed better-than-expected results that include a 35.6% rise in full-year pre-tax profit, sparked by demand for its motor insurance products.
The company saw gross written premiums spike by 25.2% over the year, standing at £820.2 million – well above analysts’ previous predictions, according to Reuters, which had estimated £813 million. Focusing on the motor section, GWP increased by 30.3% to £734.3 million for 2017.
So, what was behind the success? The company highlighted that motor premiums increased during the first half of last year due to new rules surrounding personal injury claims – but that when further changes to the Ogden rate were proposed, the rise in premiums reversed.
All of this left the company with an improved combined operating ratio standing at 96.7% — compared to 98.8% a year earlier. The firm outlined that it would target a similar combined operating ratio for 2018.