Lloyd’s insurer ERS, formerly Equity Red Star, has made a half year profit for the first time in five years.
Its profit hit £1.2 million, a massive increase from the £23.6 million loss the insurer made in the first six months of 2013.
The insurers’ gross written premiums fell slightly to $194.9 million in the first half of 2014, compared with £206.6 million in 2013. Its net earned premiums also fell to £186.2 million, compared with £210.7 in the same period of the prior-year.
Its combined ratio improve to 101.5 percent, down from 112.1 percent in the first half of 2013.
ERS’ transformation programme is currently on plan as proposed in April 2013, at the point of change of control and purchase by Aquiline from IAG.
Ian Parker, chief executive of ERS, said: “There is no doubt that the operational turnaround is starting to deliver and the Q2 profit is the first tangible evidence the wider market has seen to prove this.
“This profit has been hard fought and is a result of continuing to price and select risks carefully. This discipline has seen us reduce premium in some classes and we are prepared to do that if it means protecting our bottom line. However at a total portfolio level we expect our motor portfolio to grow this year.”
ERS, Equity Red Star, Second Quarter 2014 Results, Lloyd's, Europe, Ian Parker