In a year of significant disruption for the UK motor market, specialist motor insurer ERS’ continued focus on specialism has delivered a strong underlying business performance in 2017.
Whilst ERS is announcing a loss of £12.2m for 2017 (2016: £21.7m loss), underlying trading remains strong with double-digit growth in its core specialist products. For the second year in succession the financial result is impacted by the change in the Ogden discount rate and one-offs, resulting in a Combined Operating Ratio (COR) of 104.9% (2016: 108.4%). Without these impacts, ERS’ COR would have been 97.9%.
ERS’ Gross Written Premium (GWP) was £376.1m (2016: 406.1m) which was expected as ERS took a lead in implementing price increases following Ogden and exited underperforming classes where required rates were not being sustained in the market. The consistent market strategy is bringing benefits to the franchise with the highest ever number of presentations being received from brokers and a new record high (41%) of brokers now considering ERS first for specialist motor risks.
Ian Parker CEO ERS said:
“It is frustrating that for the second year running the significant progress the company has made in executing its strategy has been masked in the financial result by the impact of Ogden and other one offs. The underlying performance though remains strong. Our underwriting strategy is clear, brokers recognise what ERS stands for, our operational infrastructure is robust, and with Martin Hall now in position the team is complete. I am excited for the future and that the earnings profile will return to the trend established before the distortions caused by the change in the Ogden discount rate.”
