ERS, formerly Equity Red Star, is pleased to announce a half year profit for the first time in five years.
Highlights:
• The double A-rated Lloyd's managing agent, which runs motor Syndicate 218, reported a Q2 calendar year profit of £1.2m.
• The result is a £25m improvement on the same period last year and is sustainable as it did not depend on prior year reserve releases.
ERS’ transformation program is currently on plan as proposed in April 2013, at the point of change of control and purchase by Aquiline from IAG.
In April this year Equity Red Star rebranded as ERS and Chief Executive Ian Parker said the new “motor only, broker only” strategy has been well received by brokers.
He continued: “There is no doubt that the operational turnaround is starting to deliver and the Q2 profit is the first tangible evidence the wider market has seen to prove this.
“This profit has been hard fought and is a result of continuing to price and select risks carefully. This discipline has seen us reduce premium in some classes and we are prepared to do that if it means protecting our bottom line. However at a total portfolio level we expect our motor portfolio to grow this year.”
Mr Parker said it was important to remember that ERS’ transformation was not yet complete.
However he added that the Board and Executive Team were delighted with the half year results and looked to the future with confidence.
ENDS
For more information please contact:
Liz McMahon
ERS PR & Communications Manager
0770 4542318
