Highlights
Gross written premiums up 6.3% to £550.3m (2014: £517.8m)
In-force policies up 2.8% to 2.001 million (2014: 1.946 million)
Combined operating ratio 5.9ppts higher at 97.8% (2014: 91.9%)
Profit before tax up 29.7% to £134.0m (2014: £103.3m)
Underlying profit before tax down 22.7% to £82.9m (2014: £107.2m)
Final dividend of 7.3 pence per share, which together with the interim dividend of 4.2 pence per share, takes the full year dividend to 11.5 pence per share. This reflects a payout ratio of 70% of underlying earnings per share, inclusive of a 20% special dividend
Gocompare.com income up 5.0% to £119.0m (2014: £113.3m); profit before tax down 9.0% to £23.3m (2014: 25.6m) as the Group invests in its strategic objectives
Well capitalised under Solvency II with Group coverage at 123% (137% prior to Group final dividend) and Solo coverage at 138%
Peter Wood, esure Group Chairman, said: "The management team made good progress on our strategic plans in 2015. The Group continued its disciplined approach and is in a strong position to capitalise on growth opportunities. The motor rating environment is now conducive for this and we are also looking at opportunities in Home. Furthermore, I am delighted that we completed the acquisition of the remaining 50% of Gocompare.com and under our strategic direction we are already seeing benefits as we reinvigorate the brand, increase the product range and invest for the future.
"The Board has declared a full year dividend of 11.5 pence per share which represents 70% of underlying profit after tax, inclusive of 20% special dividend. The Board's current outlook for profitable growth is reflected in its decision to retain capital, in line with the dividend policy, as we look to deliver stakeholder value over the medium to long term."
Stuart Vann, Chief Executive Officer, said: "Our underlying profit before tax of £82.9 million is a good achievement in a highly competitive market. During 2015 we grew both our customer base and premiums in Motor in a controlled and measured way through the delivery of our underwriting initiatives. We saw positive movements in the motor rating environment throughout the year and are well positioned to take advantage of this.
"In Home, market conditions continue to be competitive, but we remained disciplined in our rating decisions and maintained premium and customer numbers during the year. In December, we incurred around £4m of claims costs from the exceptional weather events and while our focus was on our customers at this time, through our focused and disciplined approach to underwriting our claims costs were significantly less than our market share.
"Gocompare.com is making great progress and delivered income growth of 10% in the second half of the year driven by our new advertising campaigns featuring Gio Compario, while continuing to focus on efficiency.
"We are in a strong position to deliver on our strategic objective of growing our insurance business and to take advantage of the opportunities presented through an improving Motor market. 2016 has got off to a good start and we expect to deliver gross written premium growth of 10-15% and policy growth of 4-6%, assuming stable market conditions. The combined operating ratio in Motor and Home is expected to be in the region of 97-98%. Gocompare.com is already benefitting from our full ownership and we expect the business to achieve an increase in profitability of 20-30% in 2016."
