LONDON (Alliance News) - Esure Group PLC on Wednesday kept its 2017 dividend in line with the year before, despite double-digit increases in pretax profit and gross written premiums for the period.
The FTSE 250 motor and home insurer reported gross earned premiums rose 25% to GBP820.2 million in 2017 from GBP655.0 million in 2016, with total income growing to GBP781.3 million from GBP647.5 million. Total expenses rose in line with income but were kept lower, at GBP674.0 million from GBP566.1 million.
This led to a pretax profit of GBP98.6 million, up 36% from GBP72.1 million in 2016.
During the year, in-force policies rose to 2.4 million in 2017; however the combined operating ratio dropped by 2.1 percentage points to 96.7% from 98.8%.
Esure declared a final dividend of 9.4 pence per share, down from 10.5p the year before, bringing the total payout for the year to 13.5p, in line with 2016.
"2017 has been a year of positive momentum for the group as it delivered for its customers, colleagues and shareholders. The board have declared a final dividend of 9.4 pence per share, inclusive of a special dividend, and the group's capital coverage of 155% is ahead of its normal operating range. The strong capital position allows us to pursue both our current strategy and to position the business for the future, as we look to stay at the forefront of our industry in an increasingly digital and data driven world," said Chairman Peter Wood.
Shares in esure Group were up 1.5% at 227.80 pence on Wednesday.
