GWP and ASR increase as insurer benefits from gender-neutral pricing
Esure Group has reported gross written premiums of £124.2m for the first three months of 2013, up 1.6% on the same period last year.
In its first interim management statement following is listing on the London Stock Exchange, the group also revealed GWP for its core brands Esure and Sheilas’ Wheels of £120.2m for the quarter, up 3.4% on 2012 levels. Motor increased by 3.1% to £99.2m and home by 5% to £21m.
The insurer reported that retention levels at its Sheilas’ Wheels brand had also increased as a result of gender-neutral pricing. The company expects this retention improvement to continue into the second half of the year as more young women drivers renew policies written in the second half of 2012.
Additional Services Revenues (ASR) also increased compared to Q1 2012, rising 9.6% to £27.4m.
Esure chief executive Stuart Vann (pictured) said: “Our inaugural quarterly performance as a listed company is in line with management’s expectations for profitable growth and continuing momentum in the development of ASR and broker revenues.
“While the motor market remains competitive we are already starting to see the anticipated benefits of gender-neutral pricing in higher retention rates for the Sheilas’ Wheels book and expect to see the benefits of civil justice reforms, including Laspo, later in the year.
“With our strong operational and product performance and robust financial position, I remain confident about the outlook for the first half and the year as a whole.”
Shore Capital analyst Eamonn Flanagan described the reported results as “steady and brief”, but said benefits of the Laspo reforms should not be relied on.
Flanagan said: “We would prefer to await the outcome of the Competition Commission investigation and let the fog lift from the other issues currently surrounding the UK personal motor industry before turning more positive on the prospects for the industry.”
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