Covéa Insurance announces 2017 results

3rd May 2018

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%.

 

 2017

2016

Gross written premium

£738.5m

£666.3m

Profit after tax

£24.1m

£38.4m

Combined operating ratio

97.5%

96.2%

 

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

Covea Insurance Plc is the UK underwriting business of leading French mutual insurance group Covéa, who are number 1 for property and liability insurance in France, generating over 17.4 billion Euros in premiums in 2019.  

Covéa Insurance looks after the insurance needs of over 2 million policyholders; delivering financial reassurance through its Standard & Poor’s ‘AA- stable’ rating, as a guaranteed subsidiary of Covéa. 

The company offers motor, household, protection, pet, mid and high net worth insurance and a range of commercial insurance products, through a range of distribution channels.

Employing over 1900 people, Covéa Insurance has a strong people and service ethos.  It 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.

Recently, Covéa Insurance were named as the Best Place to Work in Digital (Large Organisations) at the Digital Technology Leaders Awards.  They were also recipients of the Staff Empowerment Award at the Diversity & Inclusion in Insurance Awards, and the High Net Worth Product of the Year Award at the Insurance Times Awards.  They also received the Diversity Award at the British Insurance Awards.  They are currently shortlisted for 4 Insurance Times Awards.

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