23 November 2015
Towergate Insurance (the “Group”)* today releases its interim management statement covering the nine months to 30 September 2015.
David Ross, Chief Executive Officer said “Our financial performance has been impacted by a well documented period of instability. However, Towergate has proven to be incredibly resilient, with a significant number of clients retained and signs now that the business is stabilising, giving us a strong base to build on. We have seen improving revenue trends in both our Broking and Direct divisions and a healthy cash balance in excess of £84 million. We expect retention and new business to improve as focus on the front end of the business increases.
Our new Executive Team is now in place and with the uncertainty and distraction of senior vacancies and interim management behind us, we can focus on accelerating investment, growing the business, strengthening the infrastructure and managing cost.
Less than one month into my role as Chief Executive Officer it is obvious to me that the foundations are in place to build a better business; we have great people, clients who value our expertise and we are a market leading broker and MGA in the UK.
In meeting many of my new colleagues over the past three weeks, I have been struck by the huge passion that they have for this business, explaining why so many have stayed with us on this difficult journey. This is what we want to build on, to support our brokers and underwriters on the front line, so that they can compete confidently and profitably, whilst making Towergate a great place to work.
The result of all of these things of course is that we will improve our customer journey; make it more efficient and more effective to ensure that our clients, many of whom have shown real loyalty, will receive the very best in service and advice.
It is clear that challenges in infrastructure are going to take some time to fix, but we are a long way down the road in developing a clear set of priorities and with supportive long term investment secured, I and the rest of my team firmly believe that we can build a sustainable, integrated business.”
* The Group includes TIG Finco plc.
**Notes to the Accounts:
Launched in 1997 Towergate is the UK’s largest independently owned insurance intermediary.
Towergate is an important distribution channel for a significant range of insurance products and a key strategic partner for the UK’s largest insurers.
Towergate’s scale, customer insight and distribution relationships make it a unique business and a leader in the markets in which it operates. Its combination of distribution and underwriting gives it unparalleled consumer data and market insight.
This document may contain forward looking statements in relation to certain of Towergate’s plans and current goals and expectations, in particular but not limited to its future financial condition, performance and results. These forward looking statements can be identified by the use of forward looking terminology, including the words “aims”, “believes”, “estimates”, “anticipates”, “expects”, “intends”, “may”, “will”, “plans”, “predicts”, “assumes”, “shall”, “continue” or “should” or, in each case, their negative or other variations or comparable terminology or by discussions of strategies, plans, objectives, targets, goals, future events or intentions. By their very nature, all forward looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Towergate’s control, including but not limited to insurance pricing, interest and exchange rates, inflation, competition and market structure, acquisitions and disposals, and regulation, tax and other legislative changes in those jurisdictions in which Towergate, its subsidiaries and affiliates operate. As a result, Towergate’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set out in any forward looking statement made by Towergate. Towergate has no obligation to update any forward looking statement contained in this document or any other document or any other forward looking statement Towergate may make. All subsequent written or oral forward looking statements attributable to Towergate or to persons acting on its behalf should be interpreted as being qualified by the cautionary statements included herein. As a result, undue reliance on these forward looking statements should not be placed.
Past performance cannot be relied upon as a guide to future performance.
No representation or warranty, express or implied, is or will be made in relation to the accuracy, fairness or completeness of the information or opinions made in this document, which information and opinions should not be relied or acted on, whether by persons who do not have professional experience in matters relating to investments or persons who do have such experience. The information and opinions contained in this document have not been audited or necessarily prepared in accordance with international financial reporting standards and are subject to change without notice. No responsibility or liability whatsoever is or will be accepted by Towergate, its subsidiaries or affiliates or by any of its officers, directors, employees or agents for any loss howsoever arising, directly or indirectly, from any use of this document or its contents or attendance at any associated presentation.