esure motor book on rise
eSure Group plc has reported a 5.8% gross written premium increase to £130.7m with motor up 7.2% to £110.1m.
The insurer’s Interim Management Statement for the three months to 31 March 2015 highlights motor gross written premiums up 7.2% to £110.1m (Q1 2014: £102.7m), with motor in-force policies up 1.7% to 1.401m (FY 2014: 1.378m, Q1 2014: 1.410m). eSure also 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.’