Towergate Insurance announces full year operating earnings of
£152.4m¹
26th April 2012
Towergate Insurance today announces full year results for 2011,
a year which saw significant change within the business.
The Group’s overall performance is in line with 2010, a positive
achievement in a year which was a challenging market for the
insurance sector.
Full Year Financial Highlights:
- Annual gross written premium £3.0bn (£2.8bn
2010)
- Group income £430m (£415m 2010)
- Operating earnings £152.4m (£153.6m 2010)
- Operating cash flow £115m
- Interest cover (EBITDA/Interest) 1.6
- Operating margin 35.4% (37% 2010)
- Q4 discreet operating earnings Up 14.7% year
on year
Full Year Divisional Performance:
- Strong performance in Underwriting Division
with income increasing 10% to £76.9m (£70.0m, 2010) and operating
earnings up by 11% to £36.4m (£32.9m, 2010)
- Retail Division income increased 2.4% to
£258.2m (£252.1m, 2010) and operating earnings down slightly by 2%
to £76.6m (£77.8m, 2010)
- Paymentshield delivered strong results in a
challenging mortgage market with income increasing 2% to £64.9m
(£63.6m 2010) and operating earnings up 6% to £47.8m (£45.2m
2010)
- Network Division added 40 new Members. Income
in line with 2010 at £20.5m (£20.8m, 2010) and operating earnings
down slightly to £13.1m (£13.7m, 2010)
Change at Towergate
- Private equity investment secured
- Successful group debt refinancing and heavily over subscribed
bond issuance
- Appointment of strong Board of Directors and new appointments
to the executive team
- Acquisition facility of £90m created
- Comprehensive change programme in place and underway
Commenting on the results, Mark Hodges, Group CEO, said:
“Last year was a period of exciting change and progress in
shaping Towergate for the future. We welcomed Advent International
as a significant investor and secured long-term refinancing of the
group’s debt. With headline operating performance in line with
2010, our business has performed well in a challenging economic
environment and we have strengthened our platform for future
profitable growth. When we look back on Towergate’s history I
believe that 2011 will stand out as a memorable year in its
development.
It is pleasing to see the momentum for growth that we built in
the final quarter of 2011 being carried into the first quarter of
2012. We have completed 9 acquisitions since the start of the year
and our pipeline remains strong. Growth in our underwriting
division has continued in the first quarter alongside strong
performance in Paymentshield.
We have also progressed significantly the strategic financial
restructuring of the group to consolidate the CCV and Towergate
debt. This is a key final step in simplifying our financing
structure.
With important foundations for future growth now in place, I
have no doubt that our people will take the group to new heights in
2012 and beyond.”
The Towergate Insurance 2011 Annual Report is now available to
view and download at www.towergate.com/investors.
1. All financial information in respect of
2010 and 2011 has been presented on a pro forma basis as if the
restructured group, including CCV, Countrywide and PowerPlace, all
of which were acquired 11 February 2011, was in place for the full
12 months in both 2010 and 2011.
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