Motor premiums drive esure results
Esure Group Plc’s has reported a fall in pre-tax profits for the first half of the year, but its gross written motor premiums rose 18.2%.
After a slow start to the year, motor premiums have been moving upwards due to rising costs of crash repairs for increasingly complex vehicles, high levels of false claims for whiplash injuries and a rise in uninsured driving.
Overall, esure said floods in June hurt profits but despite that it recorded gross written premiums rising 16.3% to £320.4m in the six months of the year.
Esure now expects 2016 gross written premiums to rise up 18 percent, with in-force policy growth of nearly nine per cent, if current market conditions in motor insurance continue.
Full-year combined operating ratio is expected to be 98-99 per cent.