Ageas makes a loss as storms cost £23.5m

Ageas UK has recorded a loss of £2.7m for the first quarter of this year, compared to a profit of £12.4m in the same period last year. The fall follows in the wake of flat income and a £23.5m hit from storms Ciara and Dennis across its home, motor and commercial lines of business.

Total gross written premium income was down £5.5m at £365.3m. The household book saw GWP slightly up at £71.4m compared to £64.9m for the same quarter last year, with motor down from £193.8m to £18.9m. Travel and other insurances recorded a rise ti £42.3m from £33.9m.

Andy Watson, Ageas UK’s outgoing CEO commented: “We cannot underestimate the impact that the storms and floods had on our customers. The priority remains to get these customers back in their properties, while operating in very unusual circumstances.

“Looking into the second quarter, the lockdown has had a varied impact on our product lines. While motor claims frequencies have reduced across the industry, it is still too early to have a clear picture on the overall impact.

“We moved early to reduce our motor pricing to reflect the current situation; we are not applying any inflationary rate increases during this period; and we continue to work with industry bodies and our intermediated distribution channel to ensure we consider all fair options for our customers.”

Watson is due to step down from his role as CEO at the end of June, handing over to present director of partnerships, Ant Middle.

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