Ecclesiastical Insurance : Office plc announces results for the year ended 31 December 2016

16 March 2017

Performance driven by strong underwriting results and investment returns

Ecclesiastical Insurance Office plc ('Ecclesiastical'), the specialist financial services group, today announces its full year 2016 results.
Highlights

• Profit before tax of £62.5m up 17% (2015: £53.6m)

• Underwriting profit1 of £20.1m (2015: £13.5m), giving a significantly improved COR* of 89.8% (2015: 93.2%), driven by strong underwriting results in the UK & Ireland

• Investment returns also ahead of prior year at £54.4m (2015: £47.5m) underpinned by fair value gains on equities and supported by currency gains

• Gross written premium (GWP) increased to £310.1m (2015: £308.2m), supported by currency gains and down slightly on an underlying basis; overseas businesses delivered good GWP growth in local currency

• New Art & Private Client product launched, catering to the needs of the high net worth market. Refreshed Education, Property Owners and Cyber products launched, and new ParishPlus proposition for the UK Anglican church

• Over £24m granted to charity during 2016 thanks to strong financial performance, enabling Group to meeting its £50m three-year target in March 2016 and contribute £17m to its new target of £100m in charitable donations by the end of 2020

• Continued external recognition of the Group's position as a trusted, specialist insurer, including UK Insurance Company of the Year award at the Better Society Awards and most trusted home insurance provider in UK Fairer Finance rankings

*Underlying or alternative performance measure, refer to the 2016 full results announcement for further explanation

Mark Hews, Group Chief Executive Officer of Ecclesiastical commented:

'2016 saw us win and retain a range of significant real estate, education, heritage and charity accounts across our territories, from historic palaces to cutting edge property developers. With the introduction of a new art and private client product, we strengthened our offering to the high net worth market and also added refreshed education, property owner and cyber security products. We enhanced our senior team, recruiting a new managing director for the UK general insurance business and a new art and private client director.

I am pleased that the transformation of our business has resulted in strong results in 2016, reflecting the consistent financial performance we have achieved over the last three years. We have delivered this through applying strong underwriting disciplines and managing our exposure to risk tightly.

Our enhanced management team has focused on taking the right decisions that yield long-term, ethical and sustainable growth, resulting in a third year of improved profitability. Our strong underwriting results were supported by healthy investment returns, helped by equity gains and supported by currency gains.

As we move into 2017, we do so amidst global political uncertainty. However given our financial strength, ethical approach and specialisms, we look forward with confidence and optimism, energised to work together for our customers and for the good of society as a whole.

As a brand whose purpose is to do good, our focus remains on helping change people's lives for the better. In 2016, we gave over £24m to charity, helping us achieve our three-year target of giving £50m to charity in March 2016 and contribute £17m to our new target of giving a further £100m by 2020. We thank all of our customers, brokers and business partners for their support. Together we have been able to give to so many charitable causes here in the UK, as well as in Canada, Australia and Ireland.'

***ENDS***

For more information contact:

Issued by: Johanna Cassells, Group Marketing & Communications
T: 01452 873 158/07557 162660
E: [e-mail]

Ann-marie Russell External Communications Manager
T: 01452 873231 / 07766 558663
E: [e-mail]

Emma Smith, External Communications Manager
T: 01452 873233/07391 866584
E: [e-mail]

Notes to editors

1. Owned by a registered charity, Allchurches Trust, Ecclesiastical is a unique financial services organisation. With its main operations and headquarters in the UK, Ecclesiastical also operates in Australia, Canada and Ireland.

2. Ecclesiastical is a specialist insurer of the faith, heritage, fine art, charities, education and private client sectors.

3. Founded in 1887 to provide insurance for the Anglican Church, the company now offers a wide range of commercial insurances, as well as home insurance, selling through brokers and directly.

4. The Ecclesiastical Group also includes award-winning investment management business, EdenTree Investment Management, which provides a range of ethically screened investment funds.

5. Ecclesiastical is one of UK's Top Company Donors to Charity according to the 2014-2015 UK Guide to Company Giving. Other 2016 awards include Better Society Awards, Insurer of the Year and Post Magazine, Claims Awards, Customer Care winner.

6. In 2014 the Group launched its vision to donate £50m to charity in a three year period. In March 2016 the Group announced that it had reached its target almost a year ahead of schedule donating almost £53m in total.

7. Many businesses say they are different. Ecclesiastical really is. Find out why here www.ecclesiastical.com/ourstory