Underwriting profits hike at Ecclesiastical
Specialist insurer Ecclesiastical posted a solid set of results for 2014, as it benefitted from strong underwriting profit.
Its general insurance gross written premiums fell to £328.6 million in 2014, compared with £392.6 million in 2013. However, its underwriting profits hiked to £9.2 million in 2014, its best result in five years, compared with an £8.2 million loss in 2013.
Ecclesiastical’s profit before tax decreased to £48.2 million in the year ended December 31, 2014, compared with £66.9 million. The insurer said that this was underpinned by transformed underwriting profits despite the extensive storm and flood damage early in 2014.
It added that it also had a more ‘normal’ investment return. Group investment return fell to £37.8 million in 2014, compared with £73.8 million in 2013, due to world markets not seeing the same high levels of growth as in 2013.
Ecclesiastical’s combined ratio improved to 95.9 percent in 2014, compared with 95.3 percent in 2013, while its turnover also fell to £350.7 million in 2014, compared with £417.9 million in 2013.
The group’s overseas general insurance businesses in Australia, Canada and Ireland produced a positive set of results, with all three businesses showing a significant increase in profit during 2014 compared to the prior year. Their combined underwriting profit for 2014 was £1.1 million compared to an underwriting loss of £14.4 million in 2013.
Mark Hews, Ecclesiastical’s group chief executive, said: “These are an extremely positive set of results for our group, which show how the work we have undertaken to re-focus and re-shape our business in recent times has put us in a strong position for 2015 and beyond.
“As the largest insurer of Grade I listed buildings in the UK, many of which are irreplaceable, we continue to invest significantly in extensive risk advice and support to help protect our nation’s heritage. This approach reaped benefits in 2014 when our UK general insurance business produced a COR of 94.1 percent, despite the storms and floods at the start of the year.
“Liability performance improved markedly in the year, as we improved the quality of our portfolio, although this was offset by an anticipated increase in abuse claims – an area where we have also developed extensive safeguarding protocols to protect vulnerable lives to the maximum extent possible.
“2014 was a watershed year for the group, and follows a number of very difficult decisions we made in 2013. We thank all of our employees for their enormous contribution and commitment throughout what has been a year of extensive and, at times, unsettling change. Equally, we thank our customers and business partners whom we seek to serve, and serve extremely well. It is only with their ongoing loyal support that we can give so much to good causes.”
