ERS, the specialist motor insurer, grows 9% in the first half and delivers £3.1m profit.
The 2019 half-year results, which report GWP of £182m (£167m in 2018) reflect ERS’ capability to discover and grow new segments of specialist motor insurance. The Combined Operating Ratio (COR%) of 102.8% (96.6% in 2018) reflects the change in the discount rate to -0.25%. A strong first half investment income line helped offset the change in the discount rate.
This year’s technology investments have continued to improve the entire value chain and build on foundational investments made over the last 18 months:
- Eight products have now been rolled-out on eTrade, with half of ERS’ brokers using the platform since full launch in January
- Data Enrichment enhancements provide underwriters more confidence to pick the right risks at the right price
- Insurer Hosted Pricing has been rolled out across more products, helping get prices to market faster and providing more risk data than ever
ERS CEO Ian Parker commented "There’s a lot to be positive about our first-half performance. We’re growing faster than ever whilst being true to our specialist heritage and we’re managing to continue to keep our profitability in line with expectations. It’s not an easy balance to achieve, particularly in a dynamic market that continues to be distorted by regulation and irrational competition. As we look forward to the end of the year, our focus is on reducing our COR% - with strong underlying performance and with the investments we’ve made in infrastructure and technology, we have the foundation in place to achieve our goals and continue to build a track record of results.
It is clearer than ever that brokers are keen to support ERS with more of their specialist motor risks. This is, in part, due to the knowledge and skill of our teams and ERS’ A+ rating from Lloyd’s. It is pleasing to see brokers value credit ratings and do not always simply go for the cheapest rate. They’re looking to protect their customers and their own reputation by giving the best advice they can. No one wants a repeat of the aggravation that the market saw with the failing of Alpha and Enterprise."
