Esure first-half profit drops on weather events

Esure Group reported a drop in first-half profit on Friday as the insurer took a hit from adverse weather events.

For the six months to the end of June, gross written premiums were up 16.3% to £320.4m but underlying pre-tax profit fell 1.9% to £45.6m as adverse weather events in the first half of 2016 took their toll.

At Gocompare, revenue was up 22.3% to £72.9m, while operating profit grew 9% to £14.5m.

The company declared an interim dividend per share of 3p, down from 4.2p the year before.

Chief executive officer Stuart Vann said: "We are reporting strong growth figures, with customer numbers and premiums up across the board. Motor premium growth of 18% is particularly strong, driven by a combination of our underwriting and rating initiatives as we look to capitalise on growth opportunities in a favourable market.

"It is also pleasing to be reporting an underlying profit before tax of £45.6 million, despite the adverse weather events in the first half of the year.

"In Gocompare.com we have delivered excellent revenue growth of 22% and continue to drive the business forward through improved marketing, a strengthened management team and focus on a wider product offering."

The company achieved a total investment return of £6.8m in the first half of 2016 and said the UK’s vote to leave the European Union had a limited impact on its investment return in the period.

“The UK referendum result is expected to have limited impact on the group's operations,” it said.