“Exceptional costs” led specialist personal lines insurer to an operating loss for the 2017 financial year
UK General made an operating loss of £715k in the 2017 financial year, due to “exceptional items” that cost the personal lines insurer £5.9m.
UK General chief executive, Karen Beales revealed in December that costs related to “structural changes,” but at the time UK General said it was expecting operating profit to drop by just over a third (36%) on the previous year.
The costs related to restructuring, other one-off costs and a provision for liabilities. Before these costs are factored in, UK General’s profit still lagged behind last year’s at £5.2m compared to £8.7m in 2016.
The 2017 financial year was UK General’s first as a standalone entity and it underwent a period of change that saw JC Flowers & Co acquire it on 24 May 2017.
UK General saw net written premiums increase to £114m over the year. However, UK General claims turnover, which was £15.3m compared to the previous year’s £17.8m, was reduced by the “transitional impact” of switching capacity provider; on 1 April 2016, it signed a new capacity deal with Great Lakes Reinsurance (UK).