Esure Group Regulatory News (ESUR)

esure Group plc

Interim Management Statement for the three months ended 31 March 2014

7 May 2014

Highlights

· Total in-force policies increased 9.5% year-on-year and 1.5% in the quarter to 1.962m as at 31 March 2014 (Q1 2013: 1.791m, FY 2013: 1.933m)

· Gross written premiums broadly flat at £123.5m (Q1 2013: £124.2m), with Motor and Home down 0.5% and 1.0% respectively

· Additional services revenues ("ASR")1 down 3.5% to £24.7m (Q1 2013: £25.6m);

ASR, excluding Claims Income1, up 9.5% to £23.1m (Q1 2013: £21.1m)

· Severe weather events at the beginning of Q1 2014 are estimated to have cost the Group up to £3m more than normally expected during the quarter, at the lower end of the guidance given in March

· The Group's financial position remains strong.

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

"As we indicated at our preliminary results in March, market conditions remained highly competitive during Q1 with further market rate reductions across both Motor and Home. In this environment, we have maintained a disciplined approach to underwriting with gross written premiums broadly flat in Q1 2014 compared to Q1 2013. We have continued to seek pockets of opportunity to grow our in-force policies which have increased by 1.5% in Q1 to 1.962m. ASR, excluding Claims Income, grew in line with the increase in in-force policies from Q1 2013.

"Our customers are at the heart of everything we do and we have continued to assist those customers affected by the severe weather events in the first quarter in a fast and efficient manner.

"Our outlook for the remainder of 2014 is unchanged from the time of our preliminary results in March and we expect market conditions to remain competitive."

 For further information:

Notes

1. Additional services revenues includes four main components: (i) sales of underwritten and non-underwritten additional insurance products to Motor and Home insurance customers; (ii) instalment 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 medical, vehicle repair and car hire suppliers ("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 insurance products are stated after the deduction of claims costs. Additional services revenues 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.

About esure Group ("the Group")

The Group is an efficient, customer focused personal lines insurer, founded in 2000 by Chairman, Peter Wood, Britain's foremost general insurance entrepreneur. The Group is one of the UK's leading providers of Motor and Home insurance products through the esure and Sheilas' Wheels brands. The Group's financial performance is underpinned by precise selection and pricing of risks through granular data analysis.

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 events or results to differ materially from any expected future events or results expressed or implied in these forward-looking statements. Persons receiving this announcement should not place undue reliance on forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, the Group does not undertake to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.