LONDON (Alliance News) - FTSE 250-listed insurer esure Group PLC on Monday cut is interim dividend, as it said its underlying pretax profit dropped in the first half of 2015 despite a rise in gross written premiums and in-force policies in the period.
The company, which owns the Sheila's Wheels insurance brand and the GoCompare.com price comparison site, said its underlying pretax profit, which strips out exceptional gains and costs, fell by 21% to GBP46.5 million in the six months to the end of June from GBP59.1 million a year earlier. As a result of the fall in profit, it cut interim dividend to 4.2 pence per share from 5.1 pence per share a year earlier.
"Our performance in the first half of 2015 is in line with the guidance provided at the time of our 2014 preliminary results announcement," said Chief Executive Stuart Vann.
Gross written premiums in the first half were up by 5.8% to GBP275.5 million from GBP260.4 million. The group's in-force policies rose by 2.5% in the half. Motor premiums rose by 7.1%, but home premiums were down by 0.7%. However, trading profit from its motor business dropped heavily in the half, down 81%, amid competitive market conditions.
The company said its financial position is strong and said it remains on track for the implementation of the Solvency II regime in Europe.
"The management team continue to act in a disciplined manner in challenging market conditions, while delivering on the group's strategic objectives," said Peter Wood, esure's chairman.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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