Insurer posts pre-tax loss of £21.5m in first half results.
Ecclesiastical has reported a pre-tax loss of £21.5m for the first six months of 2008, compared to a £28.7m profit in its H1 results last year.
Gross written premiums were up £9m (4.5%) to £210.8m, on the same period last year.
The group posted an overall combined ratio of 104.5%, compared to 101.2% in 2007, and an investment loss of £35.3m, compared to a profit of £48.1m in the same period last year.
In a statement, Ecclesiastical said South Essex Insurance Brokers, which it acquired in February, delivered a £0.4m profit in the first three months since completing the deal. It added that UK claims costs had fallen from £49.8m in 2007 to £44.7m in 2008.
Group chief executive, Michael Tripp, said: “Gross written premiums saw a positive growth of 4.5% in the first half of the year. This is a result of our clear focus on niche care, education, charity, faith and heritage business. We also maintained our underwriting discipline in difficult market conditions.
“Our customer base is strengthening with more than 90% of our niche customers renewing with us and our service continues to improve yet further for both end customers and brokers.
“Stock market returns have inevitably affected our results and the insurance market remains very challenging. Claims costs, although lower than 2007, are still high prompted by metal theft in particular.
“However, over the past 18 months we’ve been pushing forward a great deal of change in our business: modernising our approach, reducing costs and planning to improve every aspect of our operation. Change is always difficult, but we’re adapting quickly and putting ourselves in a strong position for the future.
“We have a clear vision of the insurer we want to become. Our focus now is to continue strengthening our core business by growing at a sustainable rate. These are challenging times, but we are performing well and can expect continued success in the future.”
