Industry Insurance Headquarters Brentwood, United Kingdom Founded 1946 Type of business Private | Website www.ers.com CEO Ian Parker (Apr 2013–) Number of employees 680 | |
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Key people Ian Parker (Chief Executive Officer)
Mark Bacon (Underwriter Director)
Alex Hardy (Sales Director)
Katie Wade (Chief Financial officer)
Tim Yorke (Chief Operating Officer)
Peter Hessey (HR Director)
Ryan Warren (Chief Risk Officer)
Donna Willis (Director Of Operations)
Gina Butterworth (Underwriting Director)
Jonathan Watson (Marketing Director)
Peter Smith (Claims Director) Parent Aquiline Capital Partners | ||
ERS is the largest specialist motor insurance syndicate in Lloyd’s of London, underwriting its business through Syndicate 218 and has an A+ Lloyds rating. The company deals wholly in specialist motor insurance and works exclusively with brokers to provide policies for more than 750,000 policyholders annually. ERS offers a range of specialist cover - distinct from the mass market - for classic cars, super cars, enthusiast vehicles, private cars, vans, motorcycles, taxis, minibuses, fleets, haulage, agricultural vehicles and motor breakdown amongst others. The company articulates that its key point of difference is its employment of dedicated underwriters and claims managers who are experts in each of the respective sectors that ERS operates in, giving its brokers direct access to the expertise relevant to their and their clients’ needs. The company celebrated its 70th Anniversary in December 2016.
Contents
History
ERS began life in 1946 as Equity Motor Policies, a Lloyd's syndicate. In 1987 the company merged with Red Star to form Equity Red Star. Nine years later the company was bought by Cox Insurance, a Lloyd's underwriting business specialising in nuclear, marine and catastrophe insurance.
In 2002, following losses incurred due to 9/11, Cox Insurance withdrew from its commercial insurance activity to focus on personal lines. The business raised new equity capital to support its motor underwriting operation.
A management buyout of the business in 2005 led to a new focus and a new name, Equity Insurance Group – led by CEO, Neil Utley - backed by investors Englefield and Duke Street Capital. It was headquartered at Brentwood,_Essex. Further facilities are located in Colchester and Swansea. The group's high street broking network was rebranded, converging Bennetts, Insure-shop and JMW to become Equity Insurance Brokers.
On 4 December 2006, Australian insurer Insurance Australia Group announced that it would acquire Equity Insurance Group for £570 million and Open + Direct Insurance Services, the largest retail broking operation in Northern Ireland.. The acquisition was completed on 8 January 2007 and Neil Utley, then CEO, joined the executive team of IAG. IAG also acquired Barnett & Barnett in 2008, and went on to dispose of its branch-based broking in 2009.
In May 2012, IAG announced a strategic review of its UK operations, selling Barnett & Barnett and the NBJ Broking arm. In April 2013 US Private Equity company Aquiline purchased Equity Insurance Group from IAG for £80 million. This prompted a transformation programme which led to the sale of EDBL and its personal accident and household books to Arista. In April 2014, Equity Insurance Group rebranded to ERS and became a "motor only, broker only" insurer. It now operates solely as an A+ rated Lloyd's syndicate 218.[1]
In 2014 ERS underwent structural changes to drive further organisational efficiencies and implement steps to help the company achieve its goal of a 90% combined operational ratio. This involved consolidating ERS’ offices into two locations (London and Swansea) and expanding both locations for growth. As a result the Brentwood head office was closed with the majority of work that had been undertaken there split between London and Swansea. However servicing for ERS’ direct classic car arm, RH Insurance, remains in Brentwood at an alternative site.
The business has now completed its transformation phase and is now a growth company with a strong perform strategy.
Financial
2014
ERS announced a full calendar year profit of £8.3m, the first it has reported since 2009 and a £28m improvement year on year. The combined ratio improved by 6.6% to 101% from the prior year, with improvements across all ratios but the majority of improvement coming from the loss ratio. Gross written premiums £388m, down from £406m.
ERS has approved the closure of its 2012 year of account with a small profit, £1.4m, 0.3% of capacity. This is the first year of account since 2007 to close with a profit and is an improvement on the forecast provided last year which was for a small loss of £1.1m or 0.2% of capacity. The forecast released for the 2013 year of account remains a small loss of 0.9% of capacity with a forecast of -5.9% to +4.1%. This is an improvement on the forecast at the same point last year which was -7.3% to +2.7% and also an improvement on the Q3 2014 forecast.
2015
The calendar year profit for 2015 was 6.0m and the combined ratio improved to 99.8% (2014: 101%) and is below 100% for the first time since 2009, with improvements across all ratios but the majority of improvement coming from the loss ratio. Gross written premiums £394m, an increase of 2% from 2014.
ERS has approved the closure of its 2013 year of account with a profit, £10.7m, 2.4% of capacity, this is an improvement from a year ago which forecast 2013 as a small loss of 0.9% of capacity and a range of -5.9% to +4.1%. The current forecast released for the 2014 year of account remains a loss of 3.4% of capacity with a forecast of -8.4% to +1.6%.
Awards
ERS has received the following national awards: