eSure 2016 interim results

DividendMax Ltd.

eSure 2016 interim results

Highlights

Gross written premiums up 16.3% to £320.4m (1H 2015: £275.5m)

In-force policies up 3.7% to 2.076 million in the first half of 2016 (FY 2015: 2.001 million, 1H 2015: 1.995 million)

Combined operating ratio 3.4ppts higher at 99.2% (1H 2015: 95.8%) largely driven by adverse weather events in the first half of 2016

Underlying profit before tax down 1.9% to £45.6m (1H 2015: £46.5m) impacted by adverse weather events in the first half of 2016

Interim dividend per share of 3.0p (1H 2015: 4.2p), reflecting the Board's decision to retain capital to fund growth

Solvency II Group coverage ratio of 126% (FY 2015: 123%), post dividend; and

Solvency II Solo coverage ratio of 136% (FY 2015: 138%)

Gocompare revenue up 22.3% to £72.9m; operating profit up 9.0% to £14.5m (1H 2015: Revenue of £59.6m; operating profit of £13.3m)

Sir Peter Wood, Chairman of esure Group plc, said: "The management team is delivering on its strategic objective to grow both our insurance and price comparison businesses.

"On 7 June, we announced a strategic review of Gocompare.com to ensure we continue to focus on maximising shareholder value and the review is ongoing.

"We remain well capitalised under Solvency II and I am pleased to declare a dividend of 3.0 pence per share reflecting the Board's decision to retain capital as we look to take advantage of favourable motor market conditions."

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