Esure warned Aviva digital product release will make life tougher

Esure was warned today that Aviva is about to launch a digital home product – something which will make business even tougher in its ”weak underlying performance” in the home book.

Esure today reported profits down and a home book hit by the June weather deluge.

Shore Capital analyst Eamonn Flanagan said: “The COR reflected motor results which were in line with our forecasts but a household account which was hit by £3.3m of higher weather claims only partially offset by £1.7m of higher reserve releases.

“A weak underlying performance is about to get tougher with the imminent launch of a new digital household product from Aviva, in our view.”

Flanagan, an award-winning analyst, also said the overall results were disappointing. He said: “Esure reported disappointing 2016 interim results, with underperformance against both our and the market’s expectations at the combined ratio (COR) and underlying profit level all swamped by the significant miss on the dividend.

“With the 29% fall in the dividend reflecting the desire to retain capital to fund growth, the dividend policy of esure and its Solvency II position will again come under scrutiny.”