Allie Sanchez
Robust demand for motor insurance was the main driver for British insurer esure Group’s growth for the first three quarters of 2016.
According to company data, gross written premiums rose by almost 16% to £499 million, as motor insurance made up majority of premiums. Motor gross written premiums spiked by around 18% to almost £431 million, accounting for over 86% of the company’s premiums over the said period.
The results were the first published since its demerger with comparison engine GoCompare.com on November 3.
Aside from motor insurance, esure provides insurance for homeowners and travellers across Britain.
Barclays analysts see sustained growth for its motor insurance segment as shares rose during trading.
“The pricing environment for motor (gross premiums) remains good, with other motor insurers and industry surveys reporting circa 10% increase in pricing over Q3,” Barclays analyst Alan Devlin noted to Reuters. Barclays maintains its current “overweight” rating on esure shares.
Esure chief executive Stuart Vann added that the market for home insurance was also competitive. The firm saw its gross written home premiums increase by 3% to £68 million.
“This, coupled with the weather costs incurred earlier in the year, mean we continue to manage the portfolio accordingly, not pushing growth when we don't believe it is profitable to do so,” he explained to the newswire.
