Motor exit boosts Ecclesiastical’s results

Specialist insurer Ecclesiastical has posted a strong set of results for 2013 following its strategic exit from the motor insurance market in the UK and overseas.

The insurer’s gross written premiums fell to £392.6 million, compared with £461.1 million in 2012. The reduction was expected by the company following its decision to exit the motor business, which had been unprofitable for the company.

Ecclesiastical’s pre-tax profit climbed to nearly £70 million, compared with £37.8 million in 2012 – partly as a result of this strategic change.

The group’s combined operating ratio fell by 6 percent points to 102.9 percent while the combined ratio of the company’s UK business fell to 95.3 percent, down 10 percentage points compared with 2012.

Its overseas business produced mixed results for 2013. The Irish operations were affected by liability challenges, similar to those in the UK. In Australia, while its underlying performance improved substantially, its net result was impacted by high reinsurance costs.

Mark Hews, its chief executive, said: “This is a very positive set of results for our Group following a year in which we have re-focused and restructured a number of our businesses. The pre-tax profit of £66.9 million is a significant increase on our 2012 results and is based on strong investment returns and improvements in our Group-wide underwriting performance.

“We achieved a significant amount during 2013, often in challenging circumstances, through the hard work and commitment of everyone at Ecclesiastical. Although there is much to do in the next few years, we remain optimistic and confident that we will be successful in achieving our ambitious and central goal of giving £50 million to charity over the next three years.”