SPECIALIST motor insurer ERS has reported a second successive calendar year profit and a COR of 99.8% under 100% for the first time since 2009.
Highlights:
• The Aquiline-owned Lloyd's managing agent, which runs the A*-rated motor Syndicate 218, announced a second successive full year calendar year profit of £6.0m (2014: £8.3m).
• Gross written premiums £394m, an increase of 2% from 2014, and the first year of growth since its change of control, reflecting ERS' continued underwriting discipline and early momentum as it comes out of transformation and continues to focus on its strategy as a "motor only, broker only insurer".
• The combined ratio improved to 99.8% (2014: 101%) and is below 100% for the first time since 2009, with improvements across all ratios but the majority of improvement coming from the loss ratio.
Ian Parker, CEO said "The second stage of the turnaround is now complete, with our IT transformation executed and completed within 2.5 years, and the final stage of our operational simplification delivering a skilled and efficient workforce in London and Swansea. This transformation has been completed against a backdrop of prolonged tough market conditions and a volatile investment market. The continued support of our Brokers has been invaluable throughout our transformation, as has the discretionary effort of our employees. 2016 brings the whole focus of the company on the insurance business for the first time, rather than the transformation agenda and I am looking forward to that. "
ERS has approved the closure of its 2013 year of account with a profit, £10.7m, 2.4% of capacity, this is an improvement from a year ago which forecast 2013 as a small loss of 0.9% of capacity and a range of -5.9% to +4.1%.
The current forecast released for the 2014 year of account remains a loss of 3.4% of capacity with a forecast of -8.4% to +1.6%.
Chief Financial Officer Katie Wade said she was delighted with the progress made by the business during 2015 particularly in a year of substantial volatility and headwinds in terms of transformation and investment yields.
"These results have been hard fought but the impact of transformation is now starting to bear fruit, and we anticipate seeing even more evidence of this during 2016. Our investment income was disappointing at £2m, compared to £12m in 2014. 2016 is an exciting year for ERS. "
ENDS
For more information please contact:
Sam Hudson
ERS Commercial Director
07966 61234
sam.hudson@ers.com
Notes to Editors:
About ERS
ERS has been providing insurance products for almost 70 years and provides insurance to more than 500,000 policyholders through Lloyd's syndicate 218. ERS offers a diverse range of products, including private car, classic car, van, motorcycle, taxi, minibus, fleet, haulage, agricultural vehicle and motor breakdown.
