ERS SYNDICATE 218 PROFITS SURGES AS COVID CUTS LOSS RATIO

ERS syndicate 218 made an operating profit of £32.8m ($45.07m) in 2020, an increase on the £13.9m profit it made in 2019, despite the Covid-19 pandemic. The syndicate, which primarily writes motor insurance in the UK, reported gross written premiums decreased by 8.6% to £329.2m in 2020. ERS blamed the decline on a “challenging trading year”, as pandemic-related restrictions and national lockdowns caused reduced demand across most segments and businesses reduced their fleet sizes or laid up vehicles because of reduced car sales. The combined operating ratio for the year improved 7.8 points to 91.9%. The syndicate reported what it described as a major improvement in its net loss ratio of 10.1%, but added this was predominantly from the benefits on claims frequencies because of the lockdown restrictions imposed in the UK, which reduced road and vehicle usage.