Towergate Insurance Q1 2012 interim management statement

22nd May 2012

Towergate Insurance today releases its Interim Management Statement covering the period 01 January 2012 to 31 March 2012.

Q1 Financial Highlights

  • Group income £105.5m (2% increase on 2011; £103.3m)
  • Group operating earnings £34.3m (9% increase on 2011; £31.4m)
  • Operating earnings margin 32.5% (2% increase on 2011; 30.4%)

Q1 Divisional Performance

  • In the Underwriting Division, income was up 12% to £19.6m (£17.5m 2011) with operating earnings up 31% to £8.0m (£6.1m 2011)
  • In the Retail Division, income was down 4% to £60.5m (£62.8m 2011) with operating earnings down by 8% to £15.6m (£17.0m 2011)
  • In Paymentshield, income was up 11% to £16.6m (£15.0m 2011) with operating earnings up 17% to £12.2m (£10.4m 2011)
  • In the Network Division, income was down 10% to £4.5m (£5.0m 2011) with operating earnings down 16% to £2.6m (£3.1m 2011)

Commenting on Q1, Mark Hodges Group CEO said today:

“It is pleasing to see that the momentum in our Operating Earnings we referred to in our full year results statement has continued in the first quarter of 2012. Towergate as a whole continues to grow despite the challenging economic conditions impacting many of our customers and we remain confident about the rest of the year.

Our Paymentshield and Underwriting divisions have continued to deliver strong year on year growth in both top and bottom line. They are well positioned to maintain growth throughout the remainder of the year.

The results in our Retail and Network Divisions are particularly impacted by the difficult trading faced by many SME businesses. Within Retail we have seen growth in our specialist lines and volume service businesses leaving income down just 4% year on year.

As stated in our year end results, the group completed 9 acquisitions to the end of April with 6 of these acquisitions strengthening our regional broking presence in our Retail Division. Our pipeline of potential acquisitions is healthy and we are confident in our ability to continue to grow Towergate through quality, relationship based acquisitions.

We remain optimistic for the remainder of the year and believe the group will continue to grow profitably.”


Media Contacts

Kelly-Ann Knight

Group Head of External Communications

Towergate

Mobile: 07717 866190

Email: kelly-ann.knight@towergate.co.uk


Simone Spinks

Group Communications Manager

Towergate

Mobile: 07872 821666

Email: simone.spinks@towergate.co.uk