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Esure premiums jump 18% thanks to motor division, home unit hit by weather
FTSE 250 insurer Esure reported an 18% jump in first-quarter gross written premiums on Thursday thanks to a solid performance form its motor division as its home unit was hit by claims related to bad weather, with the group on track to deliver profitable growth in 2018.
Gross written premiums rose to £221.2m in the three months to the end of March from £187.4m in the same period a year ago, with premiums in the motor division up 21.1% to £201.4m.
In the home division, however, gross written premiums were down 6.2% to £19.8m in the quarter as the company took a hit from claims related to inclement weather.
Meanwhile, in-force policies were up 9.2% overall to 2.43m, with motor policies up 16.5% to 1.96m and home policies down 13.4% to 0.47m.
Interim chief executive officer Darren Ogden said: "Our premium and policy growth in Q1, through a strong performance in motor, is particularly pleasing as we continue with our footprint expansion programme. Following the first reading of the Civil Liability Bill on 20 March 2018 competition in the market has increased. The group will remain disciplined in its rating actions as it targets 3 million in-force policies by 2020.
"During the first quarter, the UK suffered a prolonged freeze event and significant disruption from 'The Beast from the East' and 'Storm Emma' and this resulted in £8m of claims costs in home, which is £6m ahead of expectations. I would like to thank colleagues for their dedication in helping our customers during this period in what were testing times.
"After adjusting for the exceptional weather costs seen in the first quarter, the group remains on track to achieve a combined operating ratio similar to 2017 and well placed to deliver profitable growth in 2018."