Esure set to raise premiums after motor insurance profits fall 80%

Esure set to raise premiums after motor insurance profits fall 80%

The company behind Sheilas’ Wheels and Go Compare says it has been affected by an increase in the frequency of small personal injury claims

Esure, owner of Sheilas’ Wheels and Go Compare, has said it is planning to raise premiums after a surge in small injury claims helped push half-year profits in its motor insurance underwriting business down by four-fifths.

The company said trading profit for that area of its business was down 80.7% to £3.3m as it was “impacted by claims inflation, in particular the market increase in the frequency of small personal injury claims”. Its shares dropped nearly 9% as the fall contributed to a 21% slide in underlying pre-tax profits for the first six months of the year to £46.5m.

Related: Go Compare founder to bank £44m after selling remaining stake to esure

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Source: Guardian Transport

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