Esure Group reported a drop in first-half profit on Friday as the insurer took a hit from adverse weather events. For the six months to the end of June, gross written premiums were up 16.3% to £320.4m but underlying pre-tax profit fell 1.9% to £45.6m as adverse weather events in the first half of 2016 took their toll. At Gocompare, revenue was up 22.3% to £72.9m, while operating profit grew 9% to £14.5m. The company declared an interim dividend per share of 3p, down from 4.2p the year before. Chief executive officer Stuart Vann said: "We are reporting strong growth figures, with customer numbers and premiums up across the board. Motor premium growth of 18% is particularly strong, driven by a combination of our underwriting and rating initiatives as we look to capitalise on growth opportunities in a favourable market. "It is also pleasing to be reporting an underlying profit before tax of £45.6 million, despite the adverse weather events in the first half of the year. "In Gocompare.com we have delivered excellent revenue growth of 22% and continue to drive the business forward through improved marketing, a strengthened management team and focus on a wider product offering." The company achieved a total investment return of £6.8m in the first half of 2016 and said the UK’s vote to leave the European Union had a limited impact on its investment return in the period. “The UK referendum result is expected to have limited impact on the group's operations,” it said.
Adverse weather conditions were to blame for Esure's 1.9% dip in underlying pre-tax profits for H1 2016, which came in at £46.5m. However, gross written premiums rose by 16.3% to £320.4m. Sister company Gocompare fared better, with H1 revenues up 22.3% to £72.9m and operating profit growing by 9% to £14.5m.