What's next for Personal Lines insurance?
Today we have reported our full year results for 2020 to the market so here’s a snapshot of how they’re looking.
- Income down slightly at £1.4bn reflecting reduced volumes from the Tesco Underwriting divestment in the final quarter.
- The small change in income also reflects lower mobility on volumes, reduced motor pricing during the lockdown, and motor pricing discipline applied at the start of 2020 linked to claims inflation.
- Growth in Household and Commercial lines was driven by new deals in the broker household market; and growth in non-motor Commercial lines schemes.
- The full year net result of £58m and 95.2% COR reflects the lower frequency of motor claims as a result of less traffic on the roads, which offset the multiple weather events during the year.
- The motor market continues to evolve with underlying uncertainties reflecting claims inflation and expected future liabilities with post-Brexit and post-pandemic impact on claims costs.
- Claims volumes in household increased because of severe weather in February, August and December. This was particularly noticeable compared to the benign weather of 2019.
“It’s impossible for us to look at our 2020 performance without considering the impact of the pandemic on our customers and our employees. I have been pleased with the dedication, energy and care that our employees have shown in adapting to the various challenges throughout the pandemic and their continued commitment to understanding and responding to the needs of our customers.
“We have returned a resilient financial result in the context of the current climate, with reduced motor claims frequencies offsetting the major weather events experienced throughout the year. Reported income reflects the anticipated divestment of our share in Tesco Underwriting and the effects of the pandemic, alongside our disciplined and responsive underwriting throughout the year. We are also pleased to see the positive impact of our trading with a wide range of brokers throughout the year, which underlines the enduring strength of these relationships no matter what the challenges.
“As we face into another year of uncertainty, we are confident that we have a solid foundation on which to build. We enjoy strong relationships with brokers, the commitment of our employees, and exciting plans for the future development of Ageas in the UK.”
