Ecclesiastical announces 2010 interim results

Key figures:

• Gross written premium of £250.3m (8.8% increase on 2009)

• Investment return is a gain of £11.1m (£14.1m in 2009) 
• Underwriting loss of £15.5m (£15.1m profit in 2009) due to highest claims ratio in the last ten years
• Pre-tax loss of £9.9m (£25.7m profit in 2009)
• Group combined operating ratio is 111.3% (87.9% in 2009)
• Shareholders’ funds decreased to £374.9m (£392.9 in 2009) 
• We are pleased to announce a special additional grant of £10m to our charitable owner from our 2009 results; and we’re on track to give our biggest ever sustainable grant from 2010 results (total grant in 2009 was £8.5m). 

Commenting on the results Group Chief Executive Michael Tripp said:

“2009 was a year of good fortune for us with a particularly benign claims experience and a stock market recovery, which lead to our second best ever financial result. This year a number of exceptional weather events have hit us hard. In particular exposure to the Chilean earthquake, the worst winter weather in the UK for 30 years and two exceptional hailstorms in Australia have all had an impact on our business. In addition one-off costs associated with the reorganisation of our life business and the UK stock market at a low point on 30th June, resulted in capital value reductions of almost £9m.

“However, our underlying underwriting results remain stable and very much in line with the market. Our underlying premium growth was 1.5%, which again is positive at this time in the market. We are continuing to achieve growth and meet new business targets. In particular, our charity and heritage business is growing well. Our ethical investment funds are also performing better than anticipated with sales of our Amity range exceeding 2009 sales four-fold.

“Last year’s successes have enabled us to use the first half year to plan for the future and invest in our key business areas which will be crucial for our success in the long run. The launch of our charity and care insurance products online earlier this year is a clear example of how our business is meeting the challenges of an increasingly competitive market.

“2010 continues to present challenges for us, but with a strong underwriting discipline, careful management and analysis of claims and an increasing appetite for new business we’re confident we can achieve our goals. In line with the rest of the UK market, for the rest of 2010 we will be taking action on our UK motor account and revising our casualty rates as third party claims escalate.

“Despite these challenging times, we are pleased to announce that we will be giving an additional £10m grant to our charitable owner from our 2009 results and are currently on track to give our biggest ever sustainable grant also from our 2010 results.”