Insurer's COR for the year came in at 97.5% .

Covéa Insurance has posted an 11% rise in gross written premium to £738.5m for the year ended 31 December 2017 (2016: £666.3m).

However, profit for the year dropped to £24.1m in 2017, compared to the £38.4m achieved in the prior 12 months.

In addition, its combined operating ratio (COR) deteriorated slightly to 97.5% from 96.2% in 2016. Its adjusted COR following the Ogden rate change was 101.2% in 2016.

GWP
The provider noted its growth in GWP was due to an increase in average motor premiums, partially as a result of the reduction in the discount rate in February 2017.

It added that continued growth in commercial lines had also contributed to its increased GWP.

In addition, the rise was also driven by the development of its Provident Insurance direct distribution operation.

Motor
Splitting the numbers up, personal lines motor business delivered £390.5m of GWP (2016: £325.5m) and a COR of 95.3% (2016: 94.8%).

Personal lines home division GWP fell slightly to £113.2m (2016: £125.3m), while the COR deteriorated to 104.9% from 100.2%.

In commercial lines Covéa reported GWP of £190.4m, compared to £169.2m in 2016, with a 96.8% COR (2016: 95.5%).

Headwinds
James Reader, chief executive, commented: “It’s very pleasing to be able to announce that we delivered double-digit premium growth in 2017, alongside an improved level of profitability.

“We’ve faced a number of headwinds, in particular the motor pricing volatility following the Ogden rate change and continued elevated levels of claims inflation; however we continue to respond positively and maintain our focus on delivering a great service for our customers and broker partners, and sustainable profitable growth for our business.”

Reader added that the insurer's investments in digital technology and agile working was streamlining its offering and driving efficiency improvements.

He also noted that its direct relationships with customers through Provident was “providing increased understanding of customers’ requirements” and benefitting all of its distribution channels, including brokers.

Progress
Reader continued: “2017 was another year of strong progress for our business and reflects what a talented and passionate team we have at Covéa Insurance.

“I remain very confident that we are well placed to keep delivering profitable growth across all our lines of business over the coming years.”

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