Towergate Insurance has released its full year results statement covering the 12 months to 31st December 2016.
Commenting on the results, Towergate Chief Executive David Ross said: “Today is a milestone moment for Towergate as we close off a hugely significant year for the company. We have grappled with some enormously complex legacy and infrastructure challenges whilst laying the foundations for growth which returned in the fourth quarter.
“I am delighted to report that we have delivered what we set out to do; stabilising the entire business, including people, customers, market relationships, infrastructure and finance. Fixing our infrastructure has created the chassis that will hold everything together and provide a platform for everything else we are building. This is borne out in our second consecutive quarter of year-on-year adjusted EBITDA growth and the steady stream of talented income producers who have chosen to join us.
“These results are a testament to the huge effort made by the individuals and teams across Towergate who have focused relentlessly on transforming the business and pursuing opportunities for growth. In addition, the unwavering support from our shareholders HPS Investment Partners and Madison Dearborn Partners, who remain steadfastly committed to both Towergate and indeed to the UK General Insurance sector, has enabled our focused pursuit of the fix.”
- Strong Adjusted EBITDA* performance, up £9m or 12% from 2015, with Q4 being the second quarter of positive year on year growth
- Significant progress made on planned efficiency initiatives enabling Towergate to deliver £21m of annualised savings in 2016, with further savings identified in the period
- Income in Q4 grew versus the prior year. This reflects a significant amount of underlying activity across the Group to successfully stem the adverse income trends inherited from 2015
- Insurance Broking continues to make substantial progress. Advisory reported a strong performance with retention levels rising and good organic growth returning in the final quarter of 2016. Solid underlying performance in Retail, although income impacted by complex legacy SME integration, provides a stronger platform for the business in 2017 and beyond
- In Underwriting there have been significant challenges due to tough market conditions, which impacted the first half. However, a high level of remedial activity was undertaken in 2016 and income recovery is now being seen
- Paymentshield had a strong performance in 2016, driven by revised profit shares, improved retention and continued growth in new business. The number of Household policies grew for the first time in over six years, increasing by c. 20% in 2016