February 27, 2017 / 8:21 AM / 7 months ago

UK insurer esure Group sees 2016 profit ahead of expectations

Feb 27 (Reuters) - British insurer esure Group Plc said it expected 2016 group profit to be ahead of market expectations, helped by strong investment return.

The company, which provides insurance to drivers and home owners across the UK, said its gross written premium for 2016 rose 19 percent to 655 million pounds ($812.3 million).

Underlying profit after tax for 2016 is expected to be 73.4 million pounds, according to a company-compiled consensus.

Separately, Britain on Monday changed the rate at which compensation payments are calculated in personal injury claims, a move likely to increase the size of lump sum pay outs and potentially hit UK motor insurers’ profit, including that of esure Group.

The company said the discount rate announced was lower than it had allowed for as at Dec. 31, 2016 and that the group would see a further net impact of 1 million pounds in 2017. ($1 = 0.8063 pounds) (Reporting by Rahul B in Bengaluru; Editing by Gopakumar Warrier)

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