GWP and revenue fall at Ageas UK in H1 2018:

Ageas UK has recently posted a substantial net profit increase for the first half of 2018 to $31m (#27.8m) from $11m in H1 2017.

However, earnings for the supplier, for example Tesco Underwriting, fell to $921m for the six month period compared to $1.1bn in H1 2017.

The insurance company said that this mirrored"concentrate on underwriting and pricing discipline at a softening motor market".Meanwhile its combined operating ratio (COR) returned into pre-Ogden levels at 99 percent (H1 2017: 105.7percent ).

Total gross written premium (GWP) for the UK arrived at #601.5m at the first half of this year, down from #656.3m at precisely the exact same time interval in 2017.

Motor

Dividing the outcomes into branches, its engine GWP for H1 2018 was 378.4m (H1 2017: #413.2m) while its own engine COR increased to 90.6percent from 106.1percent from the first half of 2017.

Ageas noted that the private lines motor market stays soft, and pointed to some disruption in the"continuing uncertainty around the timing and quantum of any upcoming change to the Ogden reduction rate", which had led to lower than anticipated volumes.

In family GWP dropped marginally to #140.7m (H1 2017: #151.3m) and COR dropped to 116.1percent (H1 2017: 99.7percent ).

The supplier explained the outcomes for family reflected its departure out of underperforming schemes, including that its COR was negatively affected by climate events in March and May.

In"flip lines", which comprises the insurance company's commercial organization, GWP for H1 2018 was 69.3mdown marginally from the first half of 2017 as it came in at #78.9m.

COR for this region of the business increased to 108.6percent (H1 2017: 114.8percent ).

Performance

Andy Watson, chief executive officer of Ageas UK, commented:"We've posted a fantastic performance with indications of further advancement.

"Our engine publication is doing well nicely, and we're making encouraging progress in particular SME segments"

He added:"The market remains inconsistent, with engine being particularly tender.

"Whilst we're living to increase opportunities, we stay focussed on adulthood through a strong approach to underwriting and pricing."

Throughout the first half of this year, Ageas UK has also established an immediate station.

Watson commented:"We're thrilled to establish Ageas motor insurance direct to clients in May to sit along with our loved ones offer.

"Great progress is being made and we all look forward to broadening what we supply, either from our site and throughout the aggregators."