Updates from E.ON, Hiscox and Dignity
Stocks ended on a subdued note on Friday with the FTSE 100 down 11 points to 6,353.8. Miners, again, came off worse with BHPBilliton and Glencore down 5.7% and 4.6% respectively. However on the travel side there was more optimism with InterContinentalHotels chalking up a 6.2% gain to 2774p thanks to new sale and merger speculation; BA owner IAG surged 3.7% to 602p.
In the US substantially better employment data on Friday hiked the chance of a US Federal Reserve rate rise in September though the Dow still managed a 47-point climb to 17,910.3. GoldmanSachs and JPMorgan Chase saw 3% rises.
We start with a hefty £7m fine from E.ON to Ofgem. The fine relates to E.ON failing to supply business customers electricity meters by an April 2014 deadline. Ofgem says E.ON has also agreed to pay a further £7m in redress if it fails to meet a new interim target.
Ofgem claims the moves sends a strong compliance signal to suppliers. E.ON was also fined £7.7m for exit fees and overcharging customers earlier in the year, forcing it to repay £400,000 to customers.
"Customers have lost out on receiving better information about their energy consumption," says Ofgem enforcement partner Anthony Pygram. "Unless E.ON improves their poor record, they will have to pay out even more and may face a sales ban."
Moving on next to insurer Hiscox. Gross written premiums grew 12.9% to £1,536.9m (2014: £1,361.3m) driven, says the insurer in a statement this morning, by decent performance from Hiscox USA and Hiscox London Market.
Hiscox has also benefited from good risk selection and a lack of storms, floods and hurricanes it claims. In the UK and Ireland, gross written premiums were up 3.9% to £336.5m (2014: £324.0m).
"Our strategy is working," claims boss Bronek Masojada. "A long-term investment in the brand has helped us attract new business and talent and we see plenty of opportunities for growth."
Lastly, funeral operator Dignity. Underlying operating profits increased 22% to £78.1m (2014: £64m) year to date. Average incomes remain "robust" and in the year to date total revenues are almost 16% higher than last year.
Costs continue to be in line with Board expectations. Its Laurel acquisition is performing as expected, with integration of the business underway the funeral player says.
"Given the continued high number of deaths relative to 2014, the Group expects to outperform current market expectations in the full year 2015."
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