esure Group PLC (LON:ESUR) shares rose on Thursday as the insurer said that although ‘The Beast from the East’ and 'Storm Emma’ resulted in higher than expected costs in the UK Home insurance market in the first-quarter, it remains on track to deliver profitable growth in 2018.
In a trading update for the three months to March 31, the FTSE 250-listed firm said that adverse weather in the period resulted in £8mln of claims costs in the Home insurance sector, which was £6mln ahead of expectations.
READ: esure Group reports strong profit growth as demand for motor policies continues
The Shelia's Wheels brand insurer said its gross written premiums in the first quarter of 2018 jumped by 18% to £221.2mln from £187.4mln, with motor gross written premiums rising 21.1% to £201.4mln, up from £166.3mln a year ago.
Darren Ogden, esure's interim chief executive officer of the company, said: “After adjusting for the exceptional weather costs seen in the first quarter, the group remains on track to achieve a combined operating ratio similar to 2017 and well placed to deliver profitable growth in 2018.”
He added: “The group will remain disciplined in its rating actions as it targets 3 million in-force policies by 2020.”
In early morning trading, esure’s shares were up 2.5% to 229.60p.