Ageas UK, Allianz and Towergate hit the headlines this week with stories on profit and loss, concerns from brokers and a sale.
ERS has reported a trading loss of £13m for the first six months of 2017, compared to a profit of £7.2m for the same period last year.
The combined ratio was 107.6% and GWP also dropped from £221.2m last year to £212.6m.
Last year for the full year the insurer reported a small profit of £1.7m and a COR of 102.3%.
Ageas UK has reported a 68% fall in profit for the first half of 2017 to €11.2m [£10.2m] from €34.8m in the first half of last year.
The insurer highlighted that it had been hit by the adjustment to the Ogden rate. It detailed that the negative impact of the rate change amounted to €31m.
The provider predicted a further negative effect of between €10m and €15m on the net result in the second half of this year.
Zurich UK has reported a business operating loss of £121m for the first half of 2017 as it took a hit from the Ogden rate change.
Excluding the impact of the new discount rate, it would have posted a business operating profit of £61.1m
The combined operating ratio (COR) deteriorated to 118.8%, which would have stood at 99.2% if the discount rate had not changed.
Following the announcement from Allianz that it has bought 49% of LV’s general insurance business, brokers have stated that the coming together of the two providers will reduce choice in the personal lines market.
Allianz noted that the move will see the insurers join forces to create a £1.7bn premium personal lines business under the LV brand, with the German insurer planning to own 69.9% long term, paying £713m in total.
While brokers were not surprised by the deal, following market speculation reported previously, they provided a mixed set of reactions, expecting both positive and negative impacts on the market as a whole.
David Ross, chief executive of Towergate and the recently created Ardonagh Group, has suggested that the holding company “could be big enough to IPO” next year.
The Telegraph reported that the group was not ruling out a potential sale or listing of the business.
- Broker Network buys Knighthood Corporate Assurance Services
- Carole Nash and Axa remain committed to Republic of Ireland bike market
- Biba signs Women in Finance Charter
- MCE blames Brexit as it pulls out of Republic of Ireland
- Markel stops writing London open market property
- GDPR: What do brokers need to know?
- Aston Lark buys Ingram Hawkins and Nock