esure Group plc 2016 Q3 Trading Update (6764O)
November 09 2016 - 1:00AM
UK Regulatory
TIDMESUR
RNS Number : 6764O
esure Group plc
09 November 2016
esure Group plc
9 November 2016
Continued strong growth; on track for the full year
Trading update for the nine months to 30 September 2016
Highlights
-- Gross written premiums up 15.9% to GBP499.0m (YTD Q3 2015: GBP430.5m)
o Motor gross written premiums up 18.3% to GBP430.6m (YTD Q3
2015: GBP364.1m)
o Home gross written premiums up 3.0% to GBP68.4m (YTD Q3 2015:
GBP66.4m)
-- In-force policies up 5.7% to 2.105m (Q3 2015: 1.991m)
o Motor in-force policies up 7.6% to 1.530m (Q3 2015:
1.422m)
o Home in-force policies up 1.1% to 0.575m (Q3 2015: 0.569m)
-- Additional Services Revenues(1) up 3.5% to GBP80.6m (YTD Q3 2015: GBP77.9m)
-- The Group's financial position is strong and the capital base
has been further strengthened as part of the Gocompare.com
demerger
Stuart Vann, Chief Executive Officer of esure Group plc,
commented:
"Our business continues its strong growth trajectory and overall
premiums are up 16% and policies up 6% year-on-year, which is very
pleasing. As a result of our underwriting expertise, focus on
customer service, and efficient expense base, we are well placed to
take advantage of the current motor market conditions to grow our
market share over the coming period and deliver value to
shareholders.
"Rates in motor continue to be favourable and we are making good
progress on our strategic initiatives to grow our business. In
particular our underwriting footprint expansion, which supports our
growth ambitions, and enhanced customer contribution modelling in
motor are delivering promising results.
"In home, the market remains competitive. This, coupled with the
weather costs incurred earlier in the year, mean we continue to
manage the portfolio accordingly, not pushing growth when we don't
believe it is profitable to do so.
"We successfully demerged Gocompare.com from esure Group on 3
November having guided the business to improved results during our
ownership.
"We are on track to deliver the outlook for the insurance
business provided at the interim results earlier in the year, with
premium growth expected to be at the upper end of our guidance of
13-18% driven by our motor book. Assuming favourable market
conditions continue, we would expect to continue to see attractive
rates of growth in the coming periods."
Additional information
Gross written premiums
2016 2015 2016 2015
Q3 Q3 Q3 YTD YTD Q3
-------------- ------ ------ -------- --------
Group (GBPm) 178.6 155.0 499.0 430.5
-------------- ------ ------ -------- --------
Motor (GBPm) 154.9 130.8 430.6 364.1
-------------- ------ ------ -------- --------
Home (GBPm) 23.7 24.2 68.4 66.4
-------------- ------ ------ -------- --------
In-force policies
2016 2016 2016 2015 2015
Q3 HY Q1 FY Q3
------------------ ------ ------ ------ ------ ------
Group (millions) 2.105 2.076 2.036 2.001 1.991
------------------ ------ ------ ------ ------ ------
Motor (millions) 1.530 1.495 1.459 1.435 1.422
------------------ ------ ------ ------ ------ ------
Home (millions) 0.575 0.581 0.577 0.566 0.569
------------------ ------ ------ ------ ------ ------
For further information:
Chris Wensley Emma Banks
Head of Investor Relations Head of Corporate Communications
& Corporate Strategy t: 01737 235107
t: 01737 641324 e: emma.banks@esure.com
e: investor.relations@esuregroup.com
Chris Barrie/Grant Ringshaw
Citigate Dewe Rogerson
t: 0207 638 9571
e: esure@citigatedr.co.uk
Notes
1. Additional Services Revenues includes four main components:
(i) sales of underwritten and non-underwritten additional insurance
products to motor and home insurance customers; (ii) installment
interest on premium payment plans; (iii) policy administration
fees; and (iv) legal panel membership fees and fees generated from
the appointment of firms used during the claims process, including
vehicle repair, car hire and medical suppliers where applicable in
the relevant period ("Claims Income"). Additional Services Revenue
is stated before the deduction of any internal costs of acquisition
or administration. Non-underwritten additional insurance products
revenue represents the commission margins for the Group generated
from sales of such products. Underwritten Additional Services
Revenue is stated after the deduction of claims costs. Additional
Services Revenue is a non-IFRS measure which management uses to
evaluate Group performance. It may not be comparable with similarly
titled measures used by other companies.
Cautionary statement
Certain statements made in this announcement are forward-looking
statements. Such statements are based on current expectations and
assumptions and are subject to a number of known and unknown risks
and uncertainties that may cause actual results, performance or
achievements of the Group or industry results to differ materially
from any future events, results, performance or achievements
expressed or implied by such forward-looking statements. Persons
receiving this announcement should not place undue reliance on any
forward-looking statements. Unless otherwise required by applicable
law, regulation or accounting standard, esure disclaims any
obligation or undertaking to update or revise any forward-looking
statements, whether as a result of new information, future
developments or otherwise.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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