The insurer has ‘undertaken a strategic review’ with the aim of returning to profitability

Covéa Insurance has described 2022 as a “very challenging year” as its combined operating ratio (COR) soared by more than 20 percentage points.

The insurer revealed in its Solvency and Financial Condition report that its COR rose from 99.1% in 2021 to 122.5% in 2022.

The report, published in March 2023, also revealed the company suffered a £145.5m loss after tax in 2022, compared to a £6.1m profit in 2021.

Covéa told Insurance Times that it was looking to return to profitability in the “shortest timeframe possible”.

A spokesperson said: ”In addition to 2022 being a very challenging year from a market perspective, we also invested heavily in data technology and digital enhancements to future-proof the business, which had a significant impact on this year’s profitability.

“We have undertaken a strategic review with the objective of returning the company to profitability in the shortest timeframe possible.

“Our aim is to achieve this through focusing on insurance fundamentals across our core products, delivering great customer service, reducing expenses and ensuring adaptability in a changing environment.”

’Unfavourably impacted’

Covéa said in its report that the 2022 result has been impacted by an “unprecedented combination of economic influences caused by recent domestic and world events”.

This included high levels of claims inflation and investment values being “unfavourably impacted by the economic environment”.

However, the company saw an improvement in its gross written premium – this rose from £839,279 in 2021 to £855,040 in 2022.

The net earned premium also increased from £548,691 to £598,287 year-on-year.

”2022 saw reduced impacts in relation to Covid-19 as activity returned to pre-pandemic levels, whilst Covéa continued to deliver high quality service to both customers and business partners as claims frequencies increased,” the report added.