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Interim Management Statement

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RNS Number : 4172M
esure Group plc
07 May 2015
 



 

esure Group plc

7 May 2015

 

Interim Management Statement for the three months to 31 March 2015

 

Highlights

 

·      Gross written premiums up 5.8% to £130.7m (Q1 2014: £123.5m)

·      In-force policies up 1.3% in the quarter to 1.971m (FY 2014: 1.946m, Q1 2014: 1.962m) 

·      Motor gross written premiums up 7.2% to £110.1m (Q1 2014: £102.7m), with Home gross written premiums down 1.0% to £20.6m (Q1 2014: £20.8m)

·      Motor in-force policies up 1.7% to 1.401m (FY 2014: 1.378m, Q1 2014: 1.410m), with Home in-force policies broadly flat at 0.570m (FY 2014: 0.568m, Q1 2014: 0.552m)  

·      Additional Services Revenues1 ("ASR") down 1.2% to £24.4m (Q1 2014: £24.7m)

·      The Group's financial position remains strong; the Group remains well capitalised; and is on track for the implementation of Solvency II

·      Completed the acquisition of the outstanding 50% of Gocompare2 on 31 March 2015

 

Stuart Vann, Chief Executive Officer of esure Group plc, commented:

 

"The motor rating environment remained competitive during Q1 with the market rating indices reporting that rates were slightly soft in the period, with no sign yet of an upward turn. Despite this backdrop we have been able to implement small rate increases across the portfolio and the targeted Motor underwriting actions that we outlined at the time of our 2014 preliminary results in March have enabled us to deliver some growth in gross written premiums and in-force policies.

 

"Claims inflation continues to impact the wider motor market and in particular, the upward trend in frequency of small personal injury claims seen in the second half of 2014 has continued. This, along with many other factors, we believe will eventually cause the market rating environment to improve.

 

"Our outlook remains unchanged for 2015 in that we expect the combined operating ratio trend in 2014 to continue into 2015 largely reflecting ongoing claims inflation."

   

Business Update

 

The Group continues to explore its footprint expansion opportunities and segment re-entry programme, which in combination with the Group's Motor risk and rate review, has resulted in Motor gross written premiums increasing 7.2% to £110.1m (Q1 2014: £102.7m). The Ministry of Justice Claims Portal3 data continues to show an increase in frequency of claims notification forms, with Q1 2015 10.7% higher than Q1 2014; and March 2015 was the second highest month for notifications since the Claims Portal launched in May 2010.

 

Home gross written premiums decreased 1.0% to £20.6m as a consequence of the ongoing competitive rating environment.

 

The Group's ASR continues to perform in line with expectations and total ASR is slightly down year-on-year, on a broadly flat number of in-force policies.

 

The Group completed the acquisition of the outstanding 50% of Gocompare on 31 March 2015. During the first quarter Gocompare performed in line with management expectations.

 

For further information:

 

Nick Wrighton

Deputy Chief Finance Officer

t: 01737 235164
e: investor.relations@esuregroup.com

Adrian Webb

Head of Corporate Communications
t: 01737 641000
e: adrian.webb@esure.com

 

Chris Wensley

Investor Relations Manager

t: 01737 641324

e: investor.relations@esuregroup.com

 

Chris Barrie/Grant Ringshaw 

Citigate Dewe Rogerson

t: 0207 638 9571

e: esure@citigatedr.co.uk

 

Notes

 

1.    Additional Services Revenues includes four main components: (i) sales of underwritten and non-underwritten additional insurance products to motor and home insurance customers; (ii) installment interest on premium payment plans; (iii) policy administration fees; and (iv) legal panel membership fees and fees generated from the appointment of firms used during the claims process, including vehicle repair, car hire and medical suppliers where applicable in the relevant period ("Claims Income"). Additional Services Revenue is stated before the deduction of any internal costs of acquisition or administration. Non-underwritten additional insurance products revenue represents the commission margins for the Group generated from sales of such products. Underwritten Additional Services Revenue is stated after the deduction of claims costs. Additional Services Revenue is a non-IFRS measure which management uses to evaluate Group performance. It may not be comparable with similarly titled measures used by other companies

 

2.   Gocompare means Gocompare.com Holdings Limited, a company incorporated in England and Wales with registered number

     6062003 whose registered office is Imperial House, Imperial Way, Newport, Gwent, NP10 8UH

 

3.   The Ministry of Justice Claims Portal data can be found at http://www.claimsportal.org.uk/en/about/executive-dashboard/

  

 

Cautionary statement

 

Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and assumptions and are subject to a number of known and unknown risks and uncertainties that may cause actual results, performance or achievements of the Group or industry results to differ materially from any future events, results, performance or achievements expressed or implied by such forward-looking statements. Persons receiving this announcement should not place undue reliance on any forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, esure disclaims any obligation or undertaking to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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