LONDON (Alliance News) - Esure Group PLC on Tuesday reported higher annual pretax profit, and said it has decided to retain capital to help fund growth in an improving UK motor insurance market, reducing its dividend for 2015 to 11.5 pence from 16.8p the prior year.
Pretax profit rose to GBP134.0 million in 2015, from GBP103.3 million in 2014, as gross written premiums rose by 6.3% to GBP550.3 million and other income - from price comparison website Gocompare and other fees - rose to GBP122.2 million from GBP36.8 million. Total expenses rose by 22% to GBP577.8 million. Esure completed the acquisition of the 50% of Gocompare it didn't already own in March 2015.
"The management team made good progress on our strategic plans in 2015. The group continued its disciplined approach and is in a strong position to capitalise on growth opportunities," Chairman Peter Wood said.
Wood highlighted a motor rating environment that is "conducive" for growth, as well as "opportunities" in home insurance.
"We are in a strong position to deliver on our strategic objective of growing our insurance business and to take advantage of the opportunities presented through an improving motor market. 2016 has got off to a good start and we expect to deliver gross written premium growth of 10-15% and policy growth of 4% to 6%, assuming stable market conditions," Chief Executive Officer Stuart Vann said in a statement.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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