Covéa Insurance announces 2017 results

3rd May 2018, Covea Insurance plc has today announced its financial results for 2017.  The company is pleased to report a 10.8% increase in gross written premiums to £739m, profit after tax of £24.1m and a combined operating ratio of 97.5%.

The growth in gross written premiums was driven in large part by the continued development of the company’s Provident Insurance direct distribution operation, which was launched in 2016. An increase in average motor premiums, partially due to the impact of the reduction in the Ogden discount rate, and continued growth in commercial lines have also contributed to the growth.

The 2016 technical account result benefitted from a one-off release of claims equalisation provisions of £29.8m. Excluding this, there has been a significant improvement in technical underwriting performance, with the combined operating ratio reducing to 97.5% from 101.2% (adjusted). The key factors behind this reduction are improved loss ratios on the commercial lines and home accounts, largely due to a strong focus on pricing and underwriting discipline in a competitive market environment.

Announcing the results, James Reader, Chief Executive, commented:

“It’s very pleasing to be able to announce that we delivered double-digit premium growth in 2017, alongside an improved level of profitability. We’ve faced a number of headwinds, in particular the motor pricing volatility following the Ogden rate change and continued elevated levels of claims inflation; however we continue to respond positively and maintain our focus on delivering a great service for our customers and broker partners, and sustainable profitable growth for our business.

“Our investments in digital technology and agile working are streamlining our service offering, driving efficiency improvements and delivering further enhancements to customer experience. Additionally, our direct relationship with customers, through our Provident Insurance business, is providing increased understanding of customers’ requirements, to the benefit of our propositions across all our distribution channels. 

“2017 was another year of strong progress for our business and reflects what a talented and passionate team we have at Covéa Insurance. I remain very confident that we are well placed to keep delivering profitable growth across all our lines of business over the coming years.”

-Ends-

About Covéa Insurance

Covéa Insurance Plc is the UK underwriting business of leading French mutual insurance group Covéa (which includes the global reinsurer PartnerRe since July 2022). 

Covéa Insurance looks after the insurance needs of UK customers, across a range of product lines; delivering financial reassurance through its Standard & Poor’s ‘AA- stable’ rating, as a guaranteed subsidiary of Covéa.  

Covéa Insurance has a strong people and service ethos and holds ServiceMark accreditation with Distinction for its Personal Lines operation and its Commercial & HNW Claims teams, as well as Chartered Insurer status for its Commercial business. Covéa Insurance is signatory to the HM Treasury Women in Finance Charter and the insurance Inclusivity Pledge and has been named one of the top 75 employers in West Yorkshire & the Humber. In 2022 Covéa Insurance was named Insurer of the Year at the British Claims Awards and Personal Lines Insurer of the Year at the Insurance Times Awards.