Despite falling nine places in this year’s Top 50 Insurers report, published by Insurance Times and Insurance DataLab, insurer chief executive believes ‘growth is not difficult’ to achieve
Covéa Insurance has experienced a drastic drop in 2024’s Top 50 Insurers report, published by Insurance Times in October 2024, falling nine places to now sit in the lower half of the ranking at number 38.
However, the firm’s chief executive – Georges de Macedo – explained that the insurer’s “significantly” decreased gross written premium (GWP) for 2023/24 “was part of our strategy, was anticipated and was done on purpose”.
According to Insurance DataLab, which provides the data for the annual Top 50 Insurers report based on analysis of insurers’ most recent Solvency and Financial Condition Reports (SFCR), Covéa Insurance’s GWP had decreased 17% year-on-year to stand at £711m for 2023/24 – compared to £855m last year.
The insurer additionally reported a loss-making combined operating ratio (COR) of 195.4%. As a result, Insurance DataLab awarded Covéa Insurance an underwriting rating of 31% for 2024, compared to 51% for 2023.
Insurance DataLab’s underwriting rating is a proprietary metric based on 2023/24 underwriting performance, improvement in underwriting performance and the three-year aggregate underwriting performance.
‘Growth is not difficult’
De Macedo is not concerned about this slide down the Top 50 Insurers table, however.
For him, it is more important that the firm grows “in an efficient manner” after having to face “difficult decisions” last year “to cut expenses and reduce staff” in order to wrangle profitability into a more favourable position.
This action resulted in around 26% of staff leaving the business in 2023 – a situation that De Macedo does not want to repeat any time soon, hence the slow and steady approach.
He told Insurance Times: “The gross written premium decreased significantly [in 2023/24], but this was part of our strategy, was anticipated and was done on purpose. In insurance, growth is not difficult.
“I prefer to be a smaller insurer, but with a good underwriting discipline, [being] very clear on what I’m doing, [being] profitable and [having] the opportunity to grow.
“I want to grow in an efficient manner. I don’t want to be in the same situation in a few years’ time because we have decided to grow and then [realised] that we made mistakes and have losses again. Because when you have losses, then you [have to] make difficult decisions to cut the business, but also to cut expenses and so reduce staff. And we went through that.
“I think we did a great job in dealing with our people that left the business, but [it was] difficult times. I don’t want to go through that again.
“It’s profitability first and then we balance growth with our capital.”
Focused on the long term
De Macedo is not using the Top 50 Insurers report to benchmark Covéa Insurance’s performance against its peers.
Following the insurer reporting a loss-making COR in its SFCRs since its 2018/19 result of 102.24%, De Macedo is laser focused on profitable growth, which he is currently striving to deliver via a five-pillar, three-year plan that launched in December 2023.
He said: “We are clearly open to business and will seize the opportunities where we think we can bring value and [we] will continue to grow on business which [is] in line with our strategy.
“Next year, we will probably be in a better place [in the Top 50 Insurers report]. I’m really focused on long-term strategy and not trying to rush and fail.”
During her tenure so far, she has taken home prizes such as Best Trade Award and Publication of the Year from Biba’s annual Journalist and Media Awards, been annually shortlisted in the General Insurance Journalist of the Year (B2B) category at Headlinemoney’s yearly awards event, as well as received numerous highly commended prizes in the Insurance and Risk Features Journalist of the Year category at WTW’s annual Media Awards.View full Profile
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