eSure News Update: eSure Hit The Skids

Stocks and Shares tumble

eSure News Update: eSure hit the skids. After one of the most high profile flotation’s this year eSure hits a bump in the road as the first results come in.

The shares in the company that owns Sheila’s Wheels fell by close to eight per cent to a level that was below the figure that they were floated at in March of this year. At the time the founder of the company Peter Wood made one hundred and ninety eight million pounds. The dip in the price of the shares was thought to be due to the disappointment that was felt as the first set of results after the flotation were revealed. City analysts also suggested that the shares might have been hit by competition fears that are now a pressing concern in the insurance market as a whole.

eSure News Update

The company acknowledged that his had been a factor in the poor showing and that the uncertainty that surrounds the UK motor insurance market also influenced the poor results. In fact eSure have said that they fully expect that the premiums they take in the second half of the year will be lower than they had previously forecast. Other observers felt that wider concerns were affecting the company as the industry as a whole contends with the toughest trading conditions for many years. Regulatory uncertainty is another influencing factor. A review by the Competition Commission has also taken place, the results of which will be published later in the year.

One commentator remarked that it had seemingly been better to travel than to actually arrive as far as eSure were concerned. The motor insurance company had been heralded as being cheap and cheerful and launched with such high hopes in the spring of this year. The fact that competition is stiff in the insurance market should not have come as a surprise to eSure, the insurance market in the UK has long been a rat race that has always had low margins for profit and little or no loyalty where only the most daring of insurers have survived the cut throat atmosphere of the competition.

It would indeed be ironic if Peter Wood was now losing ground to Direct Line the company that he himself founded a whole generation ago. It is a fact that shares in Direct Line has overtaken those of eSure since the Royal Bank of Scotland spun it off twelve months ago.

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