Profits were up but directors' pay was down at Clayton Group in the year that it was sold to US broker Towers Perrin.

The Lloyd's broker was taken over in November to become part of reinsurance intermediary, TP Re.

Clayton Group, which owns Lloyd's broker Denis M Clayton reported turnover up by 9.5% in the period, to £19.4m from £17.7m.

It focuses on reinsurance and made three quarters of its revenues in North America.

Pre-tax profits were pushed up by the sale of forward exchange contracts for £2.3m following the sale.

Reported profit increased by 126% in 2002 to £6.1m from £2.7m the year before. Excluding the sale of forward exchange contracts, it was £3.8m.

Clayton Group chairman John Goldsmith said: "A significant amount of our income is in US dollars.

"The decision was made to sell those [forward exchange] contracts."

Its 2002 accounts also show that it shaved the salary of its top director by £63,000 over the period - down to £264,000 from £327,000 - and cut the bill for its five directors by £171,000.

up to £19.4m from £17.7m

Profit before tax
up to £6.1m from £2.7m