Ageas UK has posted a net profit of £43.0 million for the first nine months of 2016, an 8% drop compared to £46.9 million over the same period in 2015.
The 8% decline in net profit was attributed to weather-related claims in the first half of the year, as well as the company’s investment in innovation.
Meanwhile, the company’s UK consolidated operating ratio (COR) stood at 99.7% from 98.4% over the same period last year, with its businesses reporting mixed results.
Its motor COR improved by 3.7 percentage points (pp) to 99.3% (9M 2015: 103%), as a result of a lower expense ratio in the first half of the year offsetting some large loss claims in the third quarter.
The rest of the book, meanwhile, showed worsening underwriting performance. Household COR worsened by 12.2pp to 98.7% (9M 2015: 86.5%), reflecting the weather-related claims in the first half of 2016. Accident and health deteriorated by 3.7pp to 105.1% (9M 2015: 101.4%), while commercial lines and special risks worsened by 5.1pp to 102.6% (9M 2015: 97.5%). The company said the results reflected prior year releases in 2015 and the performance of an MGA scheme that was put into run-off in the second quarter of 2016.
“I’m pleased to report income growth across our core lines of business – motor, home and commercial, largely driven by pricing action taken in the first quarter, as well as new home and commercial broker deals launched this year,” commented Andy Watson, chief executive of Ageas UK.
“Market conditions are difficult to predict. Motor rates continue to increase and household rates are being discounted despite long-term weather impact. But we remain prudent in our approach to pricing and continue to put in place actions to ensure we can remain competitive including investing in pricing technologies and resources.”
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Ageas reveals financial results