Covéa results dampened by motor claims
Covéa Insurance plc has announced its financial results for 2018, reporting a 3.6% increase in gross written premiums to £765.1m, profit after tax of £1.5m and a combined operating ratio of 99.7%.
However, personal lines premiums were flat in the face of extremely competitive market conditions and strong inflationary claims trends, particularly on motor, which recorded gross written premiums of £389.1m and a 102.8 combined operating ratio.
Those trends were the main contributor to the overall reduction in underwriting profitability, with both the frequency of theft claims and the average cost of vehicle repairs increasing significantly.
James Reader, chief executive, said, ‘2018 was a challenging year for our personal lines business, as we faced soft market conditions, adverse weather and a significant increase in claims inflation, particularly in motor. By contrast, our commercial lines business has continued to deliver good levels of premium growth alongside a strong underwriting result.
‘Looking beyond our financial performance, we’ve continued to deliver market-leading levels of service to our customers and broker partners and have commenced a major programme of investment in new digital technologies, to ensure that we continue to meet their changing expectations. We’ve also made good progress in creating a more inclusive workplace, and in ensuring Covéa Insurance remains a great place to work for all our people. We are very ambitious as an organisation and I remain confident that we are well placed to deliver on those ambitions.’
