IQUW (also known as ERS) Syndicate 218: 2019 Result and Updated 2020 Forecast

IQUW has announced its result for the 2019 year of account for its syndicate 218 and has also released an updated forecast for the 2020 year of account.

The 2019 result of a profit of +3.32% of capacity is slightly above the midpoint of the previous forecast range, which was set at between -2% and +8% of capacity, midpoint +3%.

The 2020 forecast range has narrowed and is now at between +3.72% and +8.72% of capacity, midpoint +6.22%. The previous forecast range was between +1.2% and +11.2% of capacity, midpoint +6.2%.

Alpha comment

Following a -2.4% loss on the 2018 year of account, this is a welcome return to profit for the 2019 year, just above the midpoint forecast. The syndicate, in common with all UK motor insurers, benefitted from the lower use of vehicles resulting in considerably lower claims activity for the year of account, as many of the policies for this year of account would have been in force during the first UK COVID-19 lockdown. The 2020 year of account will also benefit from the reduced road usage throughout the pandemic and is forecasting a higher profit of +6.2%, although we might consider it slightly disappointing given the favourable circumstances for all UK motor insurers.