HBOS: UK Personal General Insurance Competitor Profile 2006

Table of Contents

• CHAPTER 1 INTRODUCTION
  • What is this report about?
  • Who is the target reader?
  • How to use this report
• CHAPTER 2 HBOS: UK PERSONAL GENERAL INSURANCE COMPETITOR PROFILE
  • HBOS Insurance trades under a number of subsidiaries and is part of the HBOS Group
    • HBOS General Insurance is part of the HBOS Group
    • HBOS General Insurance trades and underwrites through a number of subsidiaries
    • HBOS pursues a multi-brand strategy
    • HBOS is a personal lines only underwriter, operating largely thorugh Esure and St. Andrew' s
    • St. Andrew' s home insurance growth has far exceeded that of the overall market
    • As a relatively new player, Esure has recorded very high growth levels in personal insurance
    • St. Andrew' s household insurance business has grown significantly since HBOS brought underwriting in-house
    • Esure' s private motor book grew rapidly between 2001-5, and household is also starting to pick up
    • First Alternative grew significantly in the private motor insurance market between 2003 and 2005
    • HBOS general insurance' s underlying profits grew in 2005, reflecting an increase in business volume
    • 2006 interim results show that HBOS' s household GWP grew but repayment and motor insurance GWP declined
  • HBOS' s distribution strategy focuses on the use of multiple brands and high-profile advertising, to achieve direct and branch network sales
    • HBOS operates a multi-brand distribution stragety
    • HBOS' s general insurance subsidiaries focused on using TV and direct mailing advertising to promote home and motor products
      • Esure spent 39.9 per cent of its advertising budget on promoting its insurance range in 2005
      • Esure spent 51.2 per cent of its budget on TV advertising in 2005, and focused on promoting its insurance range
    • Halifax spent the vast majority of its budget on advertising household insurance via direct mail in 2005
    • Halifax largely targeted existing HBOS customers with direct mail in 2005
    • First Alternative relied on TV and direct mail when advertising in 2005
  • Going forward HBOS is hoping to expand its household and motor books
    • HBOS sees room for expansion in the household market
    • In motor insurance, HBOS is looking to expand its routes to market and exploit churn
      • HBOS intends to exploit churn in the motor market
      • Esure is aiming to double in size
  • HBOS is targeting growth in the home, repayment and motor markets, and hopes to increase penetration among existing Group customers
    • An estimated 15 million HBOS customers do not have an HBOS insurance or investment product
• CHAPTER 3 APPENDIX
  • Methodology
    • Competitor data
      • GWP versus GEP reporting
      • Major changes in FSA Return categories and their impact
    • Market size
      • Changes in market size information
  • 2005 definitions for lines of business
    • Accident & health
    • Motor
      • Total private motor
      • Private motor comprehensive
      • Private motor non-comprehensive
      • Motorcycle
    • Property
      • Household and domestic all risks.
    • Financial/Pecuniary loss business
      • Total personal financial loss business
    • Total personal
    • Total commercial
  • Ratio analysis by competitor
  • Premium income measures
    • Earned premiums
    • Gross Premium
    • Net Premium
    • Written premiums
  • Current readings
  • Future readings
  • Do you need more information?
  • SPP writing team
  • List of Tables
    • Table 1: HBOS General Insurance GWP, 2004-5
    • Table 2: HBOS policies in force, 2004-5
    • Table 3: Split between personal and commercial business for St. Andrew' s, Esure and First Alternative, 2005
    • Table 5: St. Andrew' s growth rate and share of personal GWP by selected line of business compared to the market, 2005
    • Table 4: Esure' s growth rate and share of personal GWP by selected line of business compared to the market, 2005
    • Table 8: St. Andrew' s personal lines premium income split by line of business, 2001-5
    • Table 9: Key statistics relating to St. Andrew' s, 2001-5
    • Table 6: Esure' s personal lines premium income split by line of business, 2001-5
    • Table 7: Key statistics relating to Esure' s personal lines book, 2001-5
    • Table 10: First Alternative' s personal lines premium income split by line of business, 2001-5
    • Table 11: Key statistics relating to First Alternative, 2001-5
    • Table 12: HBOS General Insurance' s underlying profits, 2004-5
    • Table 13: HBOS General Insurance GWP, H1 2005 to H1 2006
    • Table 14: Esure' s advertising spend, by medium and product, 2005
    • Table 15: Halifax' s advertising spend, by product and by medium, 2005
    • Table 16: First Alternative' s advertising spend, by product and medium, 2005
  • List of Figures
    • Figure 1: HBOS plc consists of four subsidiaries
    • Figure 2: HBOS sells a number of different personal lines insurance products via a variety of brands
    • Figure 4: St. Andrew' s home insurance growth has far exceeded that of the overall market
    • Figure 3: Esure' s motor and household accounts have grown faster than the overall respective markets between 2001-5
    • Figure 6: St. Andrew' s Household business has grown vastly since HBOS brought underwriting in-house
    • Figure 5: Esure' s private motor book grew rapidly between 2001 and 2005
    • Figure 7: First Alternative' s private motor GEP/GWP has grown significantly since 2003
    • Figure 8: HBOS General Insurance saw an increase in both income and operating expenses in 2005, with an overall rise in profits
    • Figure 9: HBOS' s 2006 interim results show that household GWP grew, while repayment insurance declined
    • Figure 10: Esure spent the majority of its advertising budget on promoting its insurance range in 2005
    • Figure 11: Esure spent 51.2 per cent of its budget on TV advertising in 2005
    • Figure 12: Halifax focused on promoting its household insurance product in 2005
    • Figure 13: Halifax spent the vast majority of its budget on direct mail advertising in 2005
    • Figure 14: First Alternative relied on TV and direct mail when advertising in 2005