ERS REPORTS RECORD RESULTS ON LOWER CLAIMS FREQUENCY

Specialist Lloyd’s motor insurer ERS has announced record profits for 2020, reflecting lower claims frequency during the pandemic. The company posted a profit of £32.8m, the highest annual profit since it was acquired by Aquiline Capital Partners in 2013. The combined ratio improved 7.8 points to 91.9%. ERS ended the year with gross written premium of £329m, down on the £360m posted in 2019. Lower demand for motor insurance during lockdown was partially offset by higher demand for specialist products, including agriculture, supercar and courier, as brokers sought to place business with an A+ rated insurer following recent market instability. Demand for commercial products increased by over 60% during the pandemic, all of which was traded online. The company said it is to expand into new commercial and specialty lines.