Esure Group Regulatory News (ESUR)

esure Group plc

Interim Management Statement for the nine months to 30 September 2013

13 November 2013

On track to meet market expectations for the full year despite challenging market conditions

Highlights

· Gross written premiums year-to-date up 4.8% to £427.0m (YTD Q3 2012: £407.6m) - motor up 4.8% and home up 4.2%

· Gross written premiums for Q3 up 1.7% to £161.5m (Q3 2012: £158.8m) - motor up 1.8% and home up 1.3%

· Total in-force policies at 30 September 2013 of 1.906 million (FY 2012: 1.759 million)

· Additional Services Revenue1 ("ASR") year-to-date up 0.4% to £79.3m (YTD Q3 2012: £79.0m)

- ASR excluding Claims Income up 7.5% to £72.7m (YTD Q3 2012: £67.6m)

· The financial position remains strong and the Group remains debt-free.

Stuart Vann, Chief Executive Officer of esure Group plc, commented:

"Gross written premiums grew by 4.8% in the first nine months of the year, with growth in Q3 broadly flat, in line with the guidance we provided at the half year. This has been achieved against a backdrop of a very competitive UK motor market.

"We continue to focus on disciplined underwriting and maintaining our high customer retention rates. This is particularly reflected in the Sheilas' Wheels book where our customers continue to see the benefits from gender-neutral pricing. We also continued cautiously to re-enter certain segments of the motor market that we exited between 2009 and 2011.

"ASR excluding Claims Income has grown proportionately in line with the growth in policy count and I am pleased with the initial performance of the "Just in Case" product that we launched during August.

"The estimated cost of the St Jude's Day storm is within the normal range of anticipated weather for Q4.

"We remain on track to meet market expectations for the full year."

Business Update

Motor premiums were up 1.8% in Q3, reflecting esure Group plc's ("the Group's") decision to maintain pricing and underwriting discipline despite continuing tough market conditions. The Group has focused on retaining existing customers, with an improvement in the overall retention rate compared to Q3 2012.

The Group continues to take a cautious and conservative approach to growth in those segments of the UK motor market from which it withdrew during the personal injury phenomenon. As was indicated at the interim results in August, it is still too soon to judge the full impact of the civil justice reforms and LASPO2, and the Group will continue to monitor developments.

The Group also remains focused on writing low-risk home business in what is also a highly competitive market. The home book has continued to grow during Q3, with home premium up 4.2% year-to-date, driven by targeted pricing in the core policy and tactical price reductions in home additional insurance products.

For further information:

Investor Relations: Nick Wrighton - Head of Corporate Finance & Investor Relationst: 01737 235164e: nick.wrighton@esure.com

esure Group Corporate Media Enquiries: Adrian Webb - Head of Marketing & Corporate Communicationst: 01737 641000e: adrian.webb@esure.com

Chris Barrie/Grant Ringshaw - Corporate Press Enquiries, Citigate Dewe Rogerson

t: 0207 638 9571

e: esure@citigatedr.co.uk

Notes

1. Additional Services Revenue includes four main components: (i) sales of underwritten and non-underwritten additional insurance products to motor and home insurance customers; (ii) installment interest on premium payment plans; (iii) policy administration fees; and (iv) legal panel membership fees and fees generated from the appointment of firms used during the claims process, including vehicle repair, car hire and medical suppliers where applicable in the relevant period ("Claims Income"). Additional Services Revenue is stated before the deduction of any internal costs of acquisition or administration. Non-underwritten additional insurance products revenue represents the commission margins for the Group generated from sales of such products. Underwritten Additional Services Revenue is stated after the deduction of claims costs. Additional Services Revenue is a non-IFRS measure which management uses to evaluate Group performance. It may not be comparable with similarly titled measures used by other companies

2. The Legal Aid, Sentencing and Punishment of Offenders Act 2012

Cautionary statement

Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and assumptions and are subject to a number of known and unknown risks and uncertainties that may cause actual results, performance or achievements of the Group or industry results to differ materially from any future events, results, performance or achievements expressed or implied by such forward-looking statements. Persons receiving this announcement should not place undue reliance on any forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, esure disclaims any obligation or undertaking to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.