Results 'still healthy' says chairman Moors after broker's pre-tax profits are cut in half
Recession-hit Bollington’s profit before tax tumbled to £1.85m in 2009 from £3.3m the previous year.
The figures represent the profit before tax of Bollington Insurance Brokers and Bollington Underwriting.
Bollington Insurance Brokers posted a pre-tax profit of £1.08m in 2009, down from £2.5m in 2008, while Bollington Underwriting’s 2009 profit was £772,222, down from £790,845 the previous year.
In an exclusive interview with Insurance Times, Bollington chairman Paul Moors defended the broker’s performance. He said: “We are still making a healthy profit, particularly where we have a unique selling point. Like other brokers, we are finding it more difficult in the SME commercial market, where most other brokers are fighting on price alone. I don’t think clients are listening as much to the differential on service.”
Its directors’ report at Companies House said the broker would continue to develop its business in niche areas under the Bollington brand. It also pointed to advances in the firm’s online trading platform over the year.
The 2009 results also include about £750,000 of extraordinary one-off costs, including a new corporate broking office in Milton Keynes and a management and sales restructure.
Bollington is 60% owned by Groupama, the remaining shares split between Moors and Joe and Stephen Wall. Moors said there were no plans to change this ownership structure.
He highlighted the need for rates rises. “Some insurance companies are struggling. There need to be some dramatic rate rises,” he said.