It was a week in which a series of insurance companies announced significant hits from the slashing of the Ogden personal injury discount rate. However, one insurer has managed to stand firm and dodge the bullet.
That insurer is Esure, which revealed on Friday that its underlying post-tax profits climbed by 18% to £80.5 million, while its gross written premiums also climbed by 19% to reach £655 million. Its combined operating ratio stood at 98.8%, however – a climb from 97.8% one year earlier.
Perhaps the most notable part of its report was that it would take only a £1 million hit from the discount rate adjustment.
“Our low risk approach to underwriting and conservative reinsurance programme mitigated much of our exposure to the change in the Ogden discount rate and leaves us well placed within the market compared to our peers,” it stated.
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It also spoke about its decoupling from Gocompare.com – suggesting that both companies were in a stronger position as a result, despite the fact that the comparison website boosted the firm by £24.5 million before the demerger.
“In 2016 we have delivered strong growth in premiums and profitability, and have provided more quotes to a wider number of customers through our footprint expansion programme,” said Esure chief executive Stuart Vann.
“This gives us great confidence to deliver our ambition of three million in-force policies by 2020.”
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