SPECIALIST motor insurer ERS has reported a full calendar year profit for the first time in five years, a £28m improvement year on year.
Highlights:
• The Aquiline-owned Lloyd's managing agent, which runs the A*-rated motor Syndicate 218, announced a full year calendar year profit of £8.3m, the first it has reported since 2009.
• Gross written premiums £388m, down from £406m, reflecting ERS’ continued refinement of strategy since rebranding as a “motor only, broker only insurer” and exiting other lines, and its pursuit of underwriting profitability over income.
• The combined ratio improved by 6.6% to 101% from the prior year, with improvements across all ratios but the majority of improvement coming from the loss ratio.
CEO Ian Parker said: “This improvement is set against the backdrop of prolonged tough market conditions, with a further fall in personal lines motor rates, and comes as a result of the hard work of the whole company and our Board and its support of such an ambitious turnaround.
“The transformation is currently on track with Q1 this year being key as the IT component will be completed. The continued support of brokers, their understanding of our strategy, and our sole focus on them for distribution, gives me real confidence for the future.”
ERS has approved the closure of its 2012 year of account with a small profit, £1.4m, 0.3% of capacity. This is the first year of account since 2007 to close with a profit and is an improvement on the forecast provided last year which was for a small loss of £1.1m or 0.2% of capacity.
The current forecast released for the 2013 year of account remains a small loss of 0.9% of capacity with a forecast of -5.9% to +4.1%. This is an improvement on the forecast at the same point last year which was -7.3% to +2.7% and also an improvement on the Q3 2014 forecast.
Chief Financial Officer Katie Wade said she was delighted with the progress made by the business during 2014 in respect of its programme of transformation, however, she confirmed that there is still a long way to go to complete the work planned.
“These results have been hard fought and are especially pleasing when the competitive and pressurised conditions of the UK motor market are taken into account,” she added, “but we are not done yet.”
ENDS
For more information please contact:
Liz McMahon
ERS PR & Communications Manager
0770 4542318
liz.mcmahon@ers.com
