AXA UK records COR of 98.7%

AXA UK has reported a combined operating ratio of 98.7% for the first half of 2013, an improvement on the 101% the company recorded over the same period last year.

Underlying earnings for the first six months of 2013 improved by 33% to £89m, up from £66m in H1 2012.

AXA UK and Ireland group chief executive Paul Evans said: “I am very pleased with the results that we have reported for the first half of this year, particularly given the challenging economic conditions and extremely competitive markets within which our businesses operate.”

The company has seen commercial lines business grow by 11%, which has restored underwriting profitability through higher business volumes, positive rating actions and ongoing efficiency improvements.

In addition, fewer weather related claims contributed to improved loss ratios.

The firm’s UK motor insurance business grew by 4%, while healthcare was up by 3%.

Evans added: “In 2010 AXA UK launched a business transformation in order to reposition our offering to better serve the needs of both our customers and brokers whilst improving the cost efficiency of our operations. These changes are now delivering stronger results for our customers, brokers and shareholders, and I am confident that we are well positioned to continue building on this success in the years to come.”