Interim Management Statement

esure Group plc

Interim Management Statement for the three months to 31 March 2013

8 May 2013

esure Group plc, today publishes its inaugural Interim Management Statement ("IMS") following the Group's flotation.

Highlights

·; esure Group plc successfully admitted to the London Stock Exchange on 27 March 2013

·; Gross written premiums for Q1 2013 of £124.2m - 1.6% up on Q1 2012

·; Gross written premiums on core brands - £120.2m - 3.4% up on Q1 2012 with motor increasing by 3.1% to £99.2m and home by 5.0% to £21.0m

·; Total in-force policies at 31 March 2013 of 1.79 million - a 1.8% increase compared to year-end 2012

·; Additional Services Revenues ("ASR") of £27.4m up 9.6% on Q1 2012

·; Strong financial position following the elimination of all debt upon IPO

Stuart Vann, Chief Executive Officer, of esure commented:

"Our inaugural quarterly performance as a listed company is in line with management's expectations for profitable growth and continuing momentum in the development of ASR and broker revenues. While the motor market remains competitive we are already starting to see the anticipated benefits of gender-neutral pricing in higher retention rates for the Sheilas' Wheels book and expect to see the benefits of civil justice reforms including LASPO1 later in the year. With our strong operational and product performance and robust financial position, I remain confident about the outlook for the first half and the year as a whole." 

Business Update

Premiums generated by our core esure and Sheilas' Wheels brands grew 3.4% year on year in a UK personal lines market that remained competitive during Q1. The Group's focus remained on volume growth for profit, not simply to gain market share.

While the full impact of gender-neutral pricing on the motor market is yet to be felt, during Q1 we have already seen a benefit to our Sheilas' Wheels book with an increase in overall retention during the quarter in line with management's expectations. We expect to see further benefit in the second half of the year when there will be an increased number of renewals from younger female insured only-drivers written during the second half of 2012.

Broker also continued to show strong growth on Q1 2012.

The Group continued to both develop new products and innovate during the quarter:

·; We launched a new excess additional insurance product during January

·; We entered the Telematics market via the Sheilas' Wheels broker service with a product called "Model Driver"

·; We completed the roll-out of the Group's new in-house built claims management system

·; In February, we became the first insurer in the UK to sell policies via quotations offered through social media

·; We have worked closely with Macmillan Cancer Support, NSPCC and Wateraid in relation to the Sheilas' Wheels Facebook quote app

Civil justice reforms remain on track and the introduction of LASPO1 in April is expected to deliver potential benefits during the second half of 2013. We expect these reforms to provide the Group with the opportunity to re-enter certain segments of the UK motor insurance market that it had exited between 2009 and 2011 as a result of the increase in personal injury claims.

1The Legal Aid, Sentencing and Punishment of Offenders Act 2012

For further information:

esure Group Corporate Media Enquiries: Adrian Webb - Head of Marketing & Corporate Communicationst: 01737 641000e: [email protected]

Chris Barrie/Grant Ringshaw - Corporate Press Enquiries, Citigate Dewe Rogerson

t: 0207 638 9571

e: [email protected]

Investor Relations: Nick Wrighton - Head of Corporate Finance & Investor Relationst: 01737 235164e: [email protected]

About esure

esure Group plc is a UK-focused personal lines insurer founded in 2000 by Peter Wood, the foremost general insurance entrepreneur in the UK and the Group's Chairman. The Group also owns 50 per cent of top-four UK insurance price comparison website, Gocompare.com. The Group has established a strong platform for growth and a track record of profitability. The Group has achieved this against a backdrop of challenging market conditions through a disciplined and conservative approach to its motor underwriting business, the application of the same philosophy in growing its home underwriting business, and a strong focus on generating revenues from associated activities such as the sale of additional insurance products alongside its core motor and home insurance policies and, more recently, the development of its branded broker services. esure Group's core brands are esure and Sheilas' Wheels. The Group's esure - and Sheilas' Wheels - branded motor insurance broker services enable the Group, via a panel of selected third party insurers, to extend the coverage of its motor insurance footprint beyond its own underwriting risk parameters.

Cautionary statement

Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and assumptions and are subject to a number of known and unknown risks and uncertainties that may cause actual events or results to differ materially from any expected future events or results expressed or implied in these forward-looking statements. Persons receiving this announcement should not place undue reliance on forward-looking statements. Unless otherwise required by applicable law, regulation or accounting standard, esure does not undertake to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.