Hit by poor weather events, Esure’s first-half underlying pre-tax profit has fallen 1.9%, the company has announced. The news wasn’t all bad however, as the insurer expects Brexit will have limited impact on the company’s operations.
As reported by
Reuters, Esure’s profit fell from £46.5m to £45.6m compared to the same period last year, despite gross written premiums rising 16.3%. An 18.2% increase in gross motor premiums was largely responsible for the increase.
What hurt Esure’s profits was the June flooding in the UK, causing an unexpected drag on the business.
With Brexit creating a level of uncertainty in the market, Esure also reassured investors it does not expect it to have a significant impact on business.
Esure is also continuing a strategic review of Gocompare, the price comparison website it acquired in 2015. The company reported excellent revenue growth and plans to continue pushing the business.
“We remain well capitalised under Solvency II and I am pleased to declare a dividend of 3p per share reflecting the board’s decision to retain capital as we look to take advantage of favourable motor market conditions,” said group chairman Sir Peter Wood.
The stock market took the news badly, with shares in the company falling 3% in early trading.
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