What happened? . PROFITABLE: EY estimates that UK motor insurers will report a 93% combined ratio for 2024, a significant improvement on the 113% reported in 2023, driven by a drop in inflation, better claims frequency, and 12% price rises. . DETERIORIATION: EY expects a 2% drop in prices in 2025, with the sector returning to a slight loss in 2025 (roughly in line with the historical norm). BNPP Exane View: . BNPPE VIEW: these reports confirm our view that pricing has reacted rationally to the strong profitability, as we set out in What''s not in the price?. If profitability in 2025 declines, this also points to the steep hill DLG will have to climb to achieve its 13% margin targets, whether stand-alone or as part of Aviva.