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Esure holds dividend steady as search for CEO continues
Esure kept its full-year dividend steady and said it had begun the search for a new chief executive to help steer the motor and home insurer through an increasingly digital and data-laden market.
Sir Peter Wood, founder of the FTSE 250 group, which in January announced top-line financial results alongside the news that CEO Stuart Vann was leaving after 17 years at the wheel, said the search for a replacement had begun. The new person will be "steeped in digital and data experience" and have "significant expertise and experience in a broad spectrum of customer facing businesses".
With profit before tax up 35.6% to £98.6m, above the £95-98m range given in January, Esure also generated positive cash flow with a net £21.1m after a negative year before. Earnings per share from continuing operations increased 34% to 19.2p, with the discontinued operation being the demerged GoCompare business.
A final dividend of 9.4p per share was proposed, comprised of a base dividend and special dividend, which together with the interim dividend of 4.1p per share, takes the full year dividend to 13.5p per share.
Operationally, the insurer lifted gross written premiums to £820.2m from £655.0m as in-force policies climbed to 2.37m from 2.17m.
On the outlook, Wood was understandably reticent to give much more detail until a new CEO is installed.
"2017 has been a year of significant delivery and I look forward to 2018 with great confidence. In 2018, we are targeting a similar combined operating ratio to 2017, assuming normal weather, as we look to deliver a positive contribution and grow the business. We remain on track to achieve our three million in-force policy target by 2020," he said.