Home, car, travel and pet insurer Esure (ESUR) felt the sharp end of investors feeling over its dividend cut on Tuesday with the shares falling 3.2% to 255p.

A recovery has pulled it back to 262.7p - 0.25% lower than it closed at on Monday night, but investors are still facing a 31% reduction in 2015’s total dividend to 11.5p as management retain more of the company’s cash to fund growth.

Web - Esure - 10 March 2016

Esure has more than two million policies at the end of 2015, almost 3% more than it had 12 months earlier, while gross written premiums improved 6.3% to £550.3 million.

Yet profits fell 22.7% to £82.9 million after management decided to buy comparison website Go Compare.

One analyst has been reported as saying that the outlook statement, which includes premium growth of 10% to 15% for 2016, is below previous expectations.

Esure has met incoming European capital rules with a coverage ratio of 123%, but this was lower than expected.

Issue Date: 08 Mar 2016