Motor insurers warned profits will be short-lived
Ernst & Young predicts motor insurance market will fall back into loss in 2015.
The motor insurance market reported profits in 2014 for the second consecutive year, but according to Ernst & Young (EY) the industry could drop back into loss in 2015.
The firm said profit for 2014 was marginal with a 99.8% net combined ratio (NCR), which was up 1.3 percentage points from the 2013 results and was propped up by a 10.8% reserve release.
EY predicted that insurers will achieve an NCR of 105% in 2015, which is a year-on-year rise of 5%, marking a definitive step away from profit.
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