First quarter results continue to pour in for major insurance firms – and now it is the turn of broking giant
Towergate Insurance to take the spotlight.
The firm, which reported its
full-year 2016 results just two weeks ago, has revealed a mixed bag of results for the first quarter of 2017 – with an encouraging performance in insurance broking offset by disappointment for its underwriting division.
Income for the quarter was up overall – standing at £77.9 million, compared to £77.0 million in the prior year quarter; although the group’s operating expenses climbed to £18.6 million (compared to £17.2 million a year earlier).
However, it was the performance of its individual divisions that particularly caught the eye with its insurance broking income rising to £52.0 million from £50.7 million a year earlier. Insurance broking reported a substantial increase in Adjusted EBITDA of 85% to £10.5 million. Meanwhile, its underwriting income slipped back 8% from £16.4 million a year ago to £15.0 million in this year’s first quarter.
“I am pleased to report that the strong performance we delivered in the second half of 2016 has continued in the first quarter of this year. Revenues have continued to improve to a point where we are reporting organic income growth once again. We have also delivered the third consecutive quarter of year-on-year growth in Adjusted EBITDA, a reflection of just how far this business has come in a relatively short span of time,” said Towergate chief executive David Ross.
“Of particular note is the profit improvement in Insurance Broking where we have reported an 85% increase in Adjusted EBITD. Similarly, Paymentshield has benefited from strong growth in new business and panel sales, delivering a strong improvement in profitability, while there are positive signs of stabilisation and improved retention in underwriting.”
Paymentshield reported a 16% increase in Adjusted EBITDA, with its performance boosted by improved carrier agreements and new initiatives gaining traction. New business has reportedly grown significantly year-on-year, while panel sales also rose by 26% in Q1 with March 2017 a record high new business sales month.
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