Insurer reports £6m operating loss and a COR of 107% as GWP rises to £193m.
Legal & General (L&G) has posted a £6m operating loss in its General Insurance business for the first half of 2018, down from a profit of £15m in H1 2017.
The insurer’s pre-tax loss was £14m in the six month period (H1 2017: £21m) and its combined operating ratio (COR) deteriorated to 107% (H1 2017: 95%).
The business noted that this was largely a result of bad weather in the first quarter of the year and noted that excluding the weather impact its operating profit was £22m and its COR 92%.
Meanwhile gross written premium was up 12% to £193m in H1 2018, compared to £173m in the same time period in 2017.
The provider explained that this included £12m from its pet insurance business, which was a 65% increase on H1 2017.
Its direct business delivered GWP of £71m (H1 2017: £63m).
L&G said in a statement: “The adverse weather claims in H1 2018 were in line with market experience and absent further weather losses we expect H2 profitability to return to levels consistent with previous years.”
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