It’s the turn of esure Group Plc to release its Annual Report and Accounts for 2020, a period which chief executive David McMillan (pictured) described as “one of the most unpredictable years in memory” not only for the market but also for the economy and broader society.
Despite the challenging period, however, the Surrey-headquartered motor and home insurance provider enjoyed positive financial results. Here’s how esure performed in 2020 compared to the previous year:
|
Metric |
2020 result |
2019 result |
|
Trading profit |
£82.6 million |
£57.7 million |
|
Profit before tax |
£34.2 million |
£3.3 million |
|
Profit after tax |
£29 million |
£5.6 million |
|
Adjusted profit after tax |
£60.2 million |
£41.7 million |
“2020 trading profit was £82.6 million, and in-force polices grew by 3% to 2.45 million,” noted McMillan. “A substantial proportion of the profits has been reinvested in the delivery of our strategy. The solvency coverage ratio finished at 164%, which provides us headroom to pursue further profitable growth and invest in our longer-term strategy.
“Our customers’ experience has continued to improve throughout 2020, with NPS (net promoter score) increasing two percentage points to 56 and complaint rates remaining low, although we recognise that there is more work to be done for our customers in this area.”
The CEO added that policyholders are increasingly choosing to engage with esure digitally, with approximately 40% of the insurer’s service now handled online. “This will be a key focus going forward as we look to strengthen our digital experience,” said McMillan.
Meanwhile the company’s board, which will consider shareholder dividends if the group has excess capital and distributable reserves, is not proposing to recommend the payment of a final dividend in respect of the year ending December 31, 2020.
