INSURER Chaucer will expand its UK motoring operations as part of an ambitious new growth strategy.
It says the push into motoring insurance will involve a “significant” presence on price-comparison websites. Chaucer wants to balance its exposure to the catastrophe business, which offers high returns but high volatility, with a greater input to the lower-risk motoring sector.
However, the firm says its core business remains the 27 specialist London classes, including the new international division, and the UK division. It says it aims to become a “top three dedicated Lloyd’s business.” It is currently number six.
It will also develop a new global energy business, taking advantage of its energy, nuclear and engineering expertise.
The company has targeted an overall return on equity of 12 per cent and a reduction in its combined ratio of two per cent.
Total premium rate increases of 2.7 per cent are forecast for this year after premium income for the first three quarters rose more than four per cent to £677m.
Bob Stuchbery, chief executive, said: “A key focus of the management team over the past few months has been to ensure we have the strategy and resources in place to make the most of our core strengths as a business going forward.
“With the launch of our new strategy, we firmly believe we are now better positioned to meet the developing needs of our markets, to deliver a superior return on capital and to build enduring value for our shareholders.”
Chaucer has staged a strong recovery after a torrid period of natural disasters which included the Chilean and Haiti earthquakes, European windstorm Xnthia and floods in Australia.