esure Group plc

11 November 2015

Interim Management Statement for the nine months to 30 September 2015

Financials

·      Gross written premiums of £430.5m (YTD Q3 2014: £410.0m)

o   Motor gross written premiums of £364.1m (YTD Q3 2014: £343.8m)

o   Home gross written premiums of £66.4m (YTD Q3 2014: £66.2m)

·      In-force policies at 1.991m (Q3 2014: 1.954m) 

o   Motor in-force policies at 1.422m (Q3 2014: 1.394m)

o   Home in-force policies at 0.569m (Q3 2014: 0.560m)

·      Additional Services Revenues¹ of £77.9m (YTD Q3 2014: £79.0m)

·      Gocompare² revenue of £90.2m (YTD Q3 2014: £88.1m)

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

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

"We have continued to grow gross written premiums in Q3 through a combination of positive rating actions and footprint expansion initiatives in Motor and Home. In Motor, as indicated at the time of our half year results, we have implemented further rate increases in Q3 with year-on-year increases now broadly in line with claims inflation. In Home, the market remains competitive.

"The return of Gio Compario in Gocompare's advertising has already had a positive impact on its revenue in the third quarter and we have continued to invest in the business for the future.

"In light of the volatile investment markets seen during Q3, we now expect to achieve a gross investment return in the region of 1% for the full year. We continue to expect our 2015 combined operating ratio to be in the region of 96% to 97%, assuming normal weather for the remainder of the year."

Additional information

Gross written premiums

In-force policies

Gocompare revenue

For further information:

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) instalment 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.