One insurer has announced plans to expand its motor car insurance operations in the UK as one component in its strategy for new growth.
Insurer Chaucer has stated that its push into the direct car insurance market will be comprised of significantly marketing their presence on several price comparison sites. Aiming to balance its exposure to the highly volatile yet high returning catastrophe business, the lower-risk online car insurance sector is Chaucer’s method of choice for doing so.
The insurance firm stated however that the core of its business will remain the 27 classes of London specialities, which include its UK division and its new international division. Chaucer stated that its aim is to move up from its standing as a top-six dedicated Lloyds’ business to instead be one of the top three.
The firm also has plans for the development of a new worldwide energy business in order to take advantage of its engineering, nuclear, and energy expertise.
Overall Chaucer has targeted a reduction in its combined two per cent ration and a return on equity of 12 per cent. Additionally the rate increases for this year were forecast at a total of 2.7 per cent in the wake of more than a four per cent rise in premium income across the last three quarters. As a result the total income figures for the firm has risen to £677 million.
Chaucer’s chief executive Bob Stuchbery stated that for the last few months one key focus for the management team has been to ensure the firm had both the resources and strategy in place to maximise Chaucer’s core business strengths in order to facilitate growth.
Mr Stuchbery continued, stating that Chaucer firmly believes that it is better positioned after the launch of its new strategy to deliver a superior capital return and also build long-term shareholder value as well.