Ecclesiastical Insurance posted pre-tax profits of £42.2 million (C$68.1 million) in the first half of 2017, compared to £15.2 million (C$24.5 million) in the same period last year – thanks to investment returns which exceeded the firm’s expectations.
For the first six months of the year, Ecclesiastical’s investment portfolio delivered profits of £40.1 million (C$64.7 million), surging from only £7.3 million (C$11.7 million) in the first half of 2016. Ecclesiastical said investment performance has been better than anticipated following a six-month period of relatively low volatility and rising stock markets.
“The returns were predominantly driven by our equity portfolio, which benefited from its weighting towards UK mid-cap stocks. Our overseas equities also performed well with underlying asset values outperforming benchmarks,” read the insurer’s results report.
Its equity portfolio alone generated returns of £30.8 million (C$49.7 million) in the first half of 2017, compared to £0.9 million in the same period last year “which reflected the market shock following the Brexit vote,” said Ecclesiastical.
Gross written premiums (GWP) went up 9% to £166 million (C$268 million) amid strong retention and new propositions, with the insurer also seeing a significant contribution from overseas businesses in Australia and Canada. GWP for UK and Ireland was £115 million (C$185 million).
“The Group has maintained a strong performance in the first half of 2017, once again demonstrating that running a business in an ethical way, for the greater good of society, is no hindrance to success,” commented group chief executive Mark Hews.
He added: “Our purpose is to do good for society. Our strong performance in the first half of 2017 means that in September, we can donate £12 million (C$19.3 million) to our charitable parent [Allchurches Trust] to be distributed to good causes.”
At the same time, Ecclesiastical is making substantial investments in technology, systems, and innovation to enhance agility, efficiency, and effectiveness with customers and intermediaries. The firm said it also continues to invest in its people to deepen and strengthen specialist expertise.
“As we look ahead to the remainder of 2017, we remain focused on the underlying performance of our business – maintaining stability, achieving strong underwriting disciplines, and tightly managing our exposure to risk,” noted Hews.
