Broking Break: Your Top Five

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Ageas UK, Allianz and Towergate hit the headlines this week with stories on profit and loss, concerns from brokers and a sale.

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5. Ogden pushes ERS to “disappointing” trading loss of £13m

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%.

 

 

 

 

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4. Profit drops 68% at Ageas UK in H1 2017

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.

 

 

 

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3. Zurich UK posts half year GI loss as Odgen hits

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.

 

 

 

 

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2. Brokers concerned about reduced choice following Allianz and LV deal

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

1. Towergate chief Ross hints at Ardonagh Group IPO – report

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.

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