Ageas remains committed to its staff, stakeholders and customers despite the uncertainty of the pandemic as it sees improvements in its COR, as well as GWP in household
Ageas UK reported an improvement in its core operating result (COR) over the second quarter which was largely due to reduced motor claims.
Its COR climbed from 96.9% to 97.8%.
Meanwhile income in motor dropped to £369m gross written premium (GWP) from £403.9m last year, which Ageas attributed to “disciplined underwriting” at the start of 2020 in response to claims inflation.
It also mentioned the need to rapidly reduce pricing at the end of Q1 due to a sudden decrease in people on the roads during lockdown.
This meant that GWP was slightly down £603.8m compared with £609.5m previously.
It saw a strong second quarter net result but this was down in comparison to the first half of 2019. The was due to weather events in early 2020 as well as the advantage of the Ogden personal injury rate adjustment in the same period last year.
Ant Middle, chief executive Ageas UK, said: “2020 is proving to be a year of disruption for society as a whole and the market we operate in. I’m immensely proud of the committed response from both our employees and broker partners to deliver continued strong service to our customers throughout this time, evidenced by some of our highest ever service and employee engagement scores.
“We do not yet know what the full impact of the pandemic will be; we have already seen significant changes to driving patterns, an increase in vulnerable road users like pedestrians and cyclists, and our homes now fulfilling the dual role of office space and living accommodation for many.
“This, combined with one of the deepest and most sudden recessions in living memory, will fundamentally change the way customers choose and use insurance. This brings a continued level of uncertainty for the months ahead, and therefore our focus has to remain on the active management of our business fundamentals and preparing for these unknowns.”
Growth
Meanwhile, its GWP in household was particularly positive at £148.8m compared with £129.8m in the same period in 2019, this growth it said was due to deals in broker distribution.
Growth in other areas it said was due to new deals and more open market sales with GWP in “travel, commercial, other” reaching £86.1m from £75.8m.
New deals included a multi-year commercial agreement with MGA Victor Insurance as well as a five-year deal for Land and Estates Insurance with R K Harrison – a specialist rural division of Howden UK.
Committed to people
However, Ageas remains committed to its stakeholders, customers and staff despite the challenging circumstances and uncertainty of the pandemic.
It enhanced its senior broker distribution team with three new appointments – Russell White, Mark Auchterlonie and Darren Whittaker.
Vulnerable customers which includes key workers, had their claims prioritised to ensure their homes were secure or mobile during the lockdown.
For the 3,600 customers that were impacted financially, and unable make payments Ageas supported them payment breaks and the option to take their vehicle off the road their vehicle until they needed to drive again.
There were no Ageas employees that were furloughed during the lockdown and the firm has not used any government schemes.
“All that said, we have a stable business with solid foundations and confidence we will emerge strongly from a challenging period for everyone. We have great people, very strong relationships with the broker market and a strong desire to positively develop the business with pace and precision,” Middle added.
Read more…Crisis management - new Ageas chief executive Ant Middle on the challenges to come
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