Ecclesiastical UK & Ireland COR stable as investment losses drive group deficit in 2022

Underwriting profits for the division fell by £800,000 year-on-year to £24.2m as the combined operating ratio ticked-up slightly from 85.3% in 2021 to 86.7%.

The insurer noted that the performance was profitable “despite a run of weather events and large claims which affected the UK and Ireland in 2022”.

Growth

On the GWP growth Ecclesiastical flagged heritage, real estate and schemes as particularly strong.

It listed that pricing had “remained robust” in these areas, partly due to reduced capacity. however Ecclesiastical stressed that its “strong” propositions and “consistent service” along with “delivery of expertise” had also been factors.

“We expect trading conditions to become more competitive in 2023 with the outlook becoming increasingly unpredictable,” the business reported.

“Inflationary pressures in the economy, the Ukrainian war, global economics, and the potential for more frequent and intense weather events due to climate change all contribute to this uncertainty.”

Loss

The figures came as Ecclesiastical Insurance, which also has offerings in Canada and Australia, swung to a group loss of £4.8m before tax, reversing a £79.2m profit the previous year.

Ecclesiastical explained this was driven by fair value losses on its investment portfolio due to stock market falls and higher interest rates.

The group’s underwriting profit jumped markedly to £27.4m from £8.8m in 2021, as the COR improved to 91% from 96.8%.

GWP rose 15% to £559m, including a £34.7m contribution from new business – almost half of the total growth.

Brand

Mark Hews, group CEO of Ecclesiastical, pictured, said: “Last year was a transformational year for our Ecclesiastical Group family. We launched a new brand, prepared for a new group structure, new strategy, new governance framework, new systems, and strengthened our leadership.

“Our immediate owner, Ecclesiastical Insurance Group, became Benefact Group, heralding an exciting new chapter for our family of businesses, united by a common goal to give all available profits to good causes.”

Charity

Ecclesiastical gave £22.7m to charitable causes in 2022.

Hews continued: “Inspired by the impact of our giving on so many, we are extremely ambitious for the future. This year will see continued investment in new systems, helping to deliver even better service and value for our customers and brokers.

“We will pursue growth opportunities, both in our existing sectors and in new niches where we can leverage our specialist expertise.

“We will make significant investment in digital propositions, helping to build our distribution capability and reach, as we seek to find ways to meet our customers’ changing needs. We will also continue to prioritise risk management innovation, exploring new ways to protect our customers from losses, particularly from the growing threat of climate change.”

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