Underwriting agency Ensurance plans to expand its offerings in the UK to support the continued growth of the business.

The agency’s business is concentrated mainly in the UK following the $1.1 million sale last year of its Australian underwriting arm to 360 Construction.

In the past three months to date, UK operations have been cashflow positive and have required no liquidity from the Australian head office.

“This is the first time since the establishment of the UK operations five years ago that this has been achieved,” Ensurance says in an investor update last week.

“Growth is expected to continue for the UK operations with new product lines to be added to the portfolio in 2021.

“Investment in specific underwriting IT systems is also leading to greater efficiencies as the underwriting team has been able to focus less on administration and more on renewals and new business development opportunities leading to significantly improved customer service and response levels.”

Ensurance UK achieved a profit of $480,000 in the six months to December 31. It’s the first time the division has made a half-year profit since its incorporation.

The results are driven by the continued growth of the portfolio, which is 18% larger in gross written premium terms than in December 2019. The business also received the first two profit commission payments relating to the 2017 underwriting year.

In the December quarter, a new capacity agreement was signed with Axa Insurance UK, replacing its partnership with Swiss Re. The deal with Axa takes effect this month.