esure Group plc preliminary results for the year ended 31 December 2013
Strong, resilient financial performance delivered in 2013 despite challenging market conditions.
Financial highlights
Gross written premiums up 4.0% to £535.8m (2012: £515.0m)
In-force policies up 9.9% to 1.933 million (2012: 1.759 million)
Profit before tax up 2.5% to £118.4m (2012:£115.5m)
Combined operating ratio improved by 3.1ppts to 89.7% (2012: 92.8%)
Additional Services Revenue ("ASR") broadly flat at £103.9m (2012: £104.1m)
- ASR excluding Claims Income up 7.9% to £95.7m (2012: £88.7m)
Pro forma earnings per share up 5.8% to 22.4 pence (2012: 21.1 pence)
Final dividend of 13.3 pence per share (FY 2012: nil). Full year dividend of 15.8 pence per share (2012: nil) represents an annualised pro forma payout ratio of 85%
Return on capital employed of 37.7% (2012: 37.0%)
Strong financial position with IGD coverage of 308%, after the final dividend
Peter Wood, Chairman of esure Group plc, commented:
"Our financial performance in our first year as a listed company is a testament to the Group's resilience, adaptability and the quality of the management team. We held firm to disciplined underwriting throughout the year and capitalised on some market opportunities. I am pleased to announce the Board has proposed a final dividend of 13.3 pence per share, which together with the interim dividend of 2.5 pence per share, represents an annualised pro forma payout ratio of 85%."
Stuart Vann, Chief Executive Officer of esure Group plc, commented:
"2013 was a year of strong, resilient financial performance within tough market conditions. The Group has delivered premiums, customer numbers and earnings per share that are all up on the prior year. This performance has been underpinned by our disciplined underwriting, reserve strength and efficient expense base.
"The Group is financially strong and continues to hold robust reserves in excess of 15% above the actuarial best estimate. We believe this prudent approach can be a significant differentiator over time given the prevailing market conditions.
"In Motor, I believe our Sheilas' Wheels brand continues to deliver unique advantages to the Group as does our decision to re-enter segments of the market that we had exited during the personal injury crisis. In Home, performance has been strong, reflecting the benefits of precise risk selection and pricing mirroring those in Motor. Operationally, we work hard to support our competitive advantages.
"By remaining nimble, focused and adaptable we will rise to meet market challenges to the benefit of customers, staff and shareholders alike."
