Covéa Insurance reports growth and solid results, despite challenging market conditions

31st March

Covéa Insurance has today announced its financial results for 2014. The company is pleased to report a 15% increase in gross written premium, an improved combined ratio of 97.8% and an increase in profit before tax to £21.3m.

 

2014
£’000

2013
£’000

Gross written premium

444,995

385,844

Profit before tax

21,264

15,191

Combined ratio

97.8%

98.7%

In spite of continuing competitive market conditions, Covéa Insurance delivered strong growth in Personal Lines, with Motor written premium increasing by 25% and Home by 6%. Profit for both Motor and Home fell relative to 2013, due to a combination of underlying claims inflation and a higher than anticipated number of large claims on Motor, and the severe weather and flooding of early 2014 on Home.

Commercial Lines continues to be a major focus and the company made good progress during 2014. Written premiums increased by 12%, and exceeded the £100m mark for the first time, with profitability improving significantly.

Announcing the company’s results, James Reader, Chief Executive, commented:

“During 2014 we maintained our disciplined approach to pricing and continued with further investments in our underlying core capabilities to support our longer term growth ambitions. The progress we’ve made during the year once again reflects the skills, effort and enthusiasm of the great team of people we have at Covéa Insurance.

At a trading level, the market has been incredibly competitive and, against this backdrop, I’m delighted to be reporting growth in premium and profit. Whilst our ambition remains for growth, 2015 we see us continue to take a disciplined approach to pricing, focusing on the maintenance of margins rather than volumes.

Looking forward, I remain very confident that Covéa Insurance is well placed to deliver 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 and served 11.5 million policyholders, generating over 16.3 billion Euros in premiums in 2016.  

Covéa Insurance handles the insurance needs of 1.5 million policyholders; delivering financial reassurance through its Standard & Poor’s A+ stable rating, as a guaranteed subsidiary of Covéa. 

The company offers motor, household, protection, mid and high net worth insurance and a range of commercial insurance products, designed to meet the needs of most individuals and businesses. Employing over 1500 people, Covéa Insurance has a strong people and service ethos, having Investors In People Gold accreditation and featuring in the 2015 and 2016 Sunday Times Top 100 Mid-sized Best Companies to Work For. It also has World Class service accreditation from the Institute of Customer Service for its Motor Claims, Home Claims and Underwriting Services teams as well as Chartered Insurer status for its Commercial and Mid/High Net Worth business.

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