Car insurance helps boost esure profits

A rise in car insurance premiums has helped esure’s full-year pre-tax profits to increase 29.7 per cent in the year up to 31 December.

This brought the British insurance company’s pre-tax profits up to £134m, although the company’s underlying profits fell 22.7 per cent to £83m, having been adjusted to factor in its takeover of Go Compare. Esure now owns Go Compare and Sheila’s Wheels.

Gross premiums rose 6.3 per cent to £550m, while car insurance premiums saw a 7.4 per cent increase to £461m.

The costs of car insurance premiums have been rising again lately after a period of low prices, as a result of competitive price comparison websites being increasingly used, and a rise in claims being made. A rise in the Insurance Premium Tax (IPT) announced by Chancellor George Osborne last summer in his Budget has also contributed to the rise in your car insurance costs.

“During 2015 we grew both our customer base and premiums in motor in a controlled and measured way,” said Stuart Vann, chief executive of esure. “We saw positive movements in the motor rating environment throughout the year and are well positioned to take advantage of this.”

Esure also provides home insurance, travel insurance and pet insurance.

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