Covéa reports solid results
Covéa Insurance has today announced its financial results for 2014, with it reporting ‘growth and solid results, despite challenging market conditions’.
The company has reported a 15% increase in gross written premiums (GWP) to circa £445m, an improved combined ratio of 97.8% and an increase in profit before tax to £21.3m.
In spite of continuing competitive market conditions, Covéa Insurance delivered strong growth in personal lines, with motor written premium increasing by 25% and home by six per cent. Profit for both motor and home fell relative to 2013, due to a combination of underlying claims inflation and a higher than anticipated number of large claims on motor, and the severe weather and flooding of early 2014 on home.
Commercial lines continues to be a major focus and the company made good progress during 2014. Written premiums increased by 12%, and exceeded the £100m mark for the first time, with profitability improving significantly.
Announcing the company’s results, James Reader, chief executive, commented, ‘During 2014 we maintained our disciplined approach to pricing and continued with further investments in our underlying core capabilities to support our longer term growth ambitions. The progress we’ve made during the year once again reflects the skills, effort and enthusiasm of the great team of people we have at Covéa Insurance.
‘At a trading level, the market has been incredibly competitive and, against this backdrop, I’m delighted to be reporting growth in premium and profit. Whilst our ambition remains for growth, 2015 we see us continue to take a disciplined approach to pricing, focusing on the maintenance of margins rather than volumes.
‘Looking forward, I remain very confident that Covéa Insurance is well placed to deliver profitable growth across all our lines of business over the coming years.’