Highlights
Profit before tax up 0.4% to £57.1m (HY 2013: £56.9m)
In-force policies up 2.1% to 1.974 million (FY 2013: 1.933 million)
Gross written premiums down 1.9% to £260.4m (HY 2013: £265.4m)
Combined operating ratio increased 1.3ppts to 90.9% (HY 2013: 89.6%) due primarily to the severe weather events in Q1
Additional services revenues ("ASR") flat at £51.0m (HY 2013: £51.0m);
ASR, excluding Claims Income, up 5.7% to £48.0m (HY 2013: £45.4m)
Earnings per share up 2.7% to 10.9 pence (HY 2013: 10.6 pence)
Interim dividend per share of 5.1p (HY 2013: 2.5p), a payout ratio of 70% (HY 2013: 70%)
Strong financial position with IGD coverage of 366%, after allowing for the interim dividend.
Peter Wood, Chairman of esure Group plc, commented:
"The Group's solid performance in the first half of the year is testament to the approach taken by the executive team, led by Stuart Vann, focusing on disciplined underwriting in difficult market conditions.
"I am pleased to announce the Board has declared an interim dividend of 5.1 pence per share, representing a payout ratio of 70%. The interim dividend that has been declared is inclusive of a 20% special dividend and is consistent with the Board's approach in setting the interim dividend. As in 2013, a key consideration when setting the final dividend will be the Board's view on prospective premium growth and our ongoing commitment to returning excess capital to shareholders."
Stuart Vann, Chief Executive Officer of esure Group plc, commented:
"The first half of 2014 has seen no let up in the competitive rating environment in both the motor and home markets. The Group remained disciplined in its approach to rating and volume which has contributed towards our solid performance.
"Our combined operating ratio of 90.9% is in line with guidance and has been achieved despite the severe weather events of Q1. This is the result of our approach to underwriting across both segments at this stage of the cycle. We continue to take a prudent approach to reserving and the Group's reserves remain in excess of 15% above our actuarial best estimate.
"We have continued to enhance our underwriting platform and customer experience in the first half of the year; these developments will play a key role in the delivery of our growth strategy, when market conditions permit."
