Covéa profits surge

Covéa Insurance has bucked the trend of insurers blaming the Discount Rate for falling profits by reporting an increase in profits of 198%.

According to Insurance Age, it said the growth in profit was because of the claims equalisation provision on the implementation of Solvency II, which added £29.8m, and increases to its investment portfolio.

Covéa chief executive James Reader said, ‘It’s pleasing to be able to announce that we delivered an increase in both written premium and profit in 2016. We’ve faced a number of headwinds, particularly in respect of the Ogden rate change and higher than expected levels of inflation on certain types of claim, but we continue to respond positively and maintain our focus on delivering a great service for our customers and broker partners and sustainable profitable growth for our business.’

The integration of the former Sterling Insurance business had also been a major success, with James adding that Covea was now a ‘broader, stronger business’ with the ability to offer its partners a more diverse product range.

Reader said, ‘Overall, the fantastic progress we’re continuing to make reflects the skills, effort and enthusiasm of the great team of people we have at Covéa Insurance. I’m very confident that we are well placed to keep delivering profitable growth across all our lines of business over the coming years.’