Cobra returns to profit

Cobra has turned last years’ £192,000 loss into a £192,000 profit. It’s pre-tax loss last year of £23,031 has become a profit of £391,987. Operating profit was up 70% to nearly £2m.

It said the Cobra Network increased member premiums via its approved agencies by £23m. It’s underwriting arm saw revenues up 16%, London Markets revenue grew 21%and its Insurance Brokers’ profits grew 5%. Cobra’s Financial Services revenue grew 48%.

Financial highlights £ (2009 in brackets)

• Commissions 21,263,751 (21,768,211)
• Interest and investment income 24,489 (247,006)
• Other income 1,390,954 (285,944)
• Total revenue 22,679,194 (22,301,161)
• Adjusted EBITDA 3,178,571 (2,320,410)
• Operating profit 1,986,639 (1,171,312)
• Profit/loss before tax 391,987 (-23,031)
• Profit/loss 192,530 (-191,978)

Market conditions

Cobra said: “Market conditions continue to be challenging, but our results illustrate that, following the reductions in expenditure achieved over the past 24 months and the continual improvements in the synergies of previously purchased companies, COBRA has achieved growth in overall profits and EBITDA against previous years' figures.

“Over the past 12 months, integration of the acquisitions has been successfully completed and the Group is now benefiting from the available synergies in all areas of operation.

“We continue to evaluate our business mix, concentrating on dealing with profitable customers, allowing us to improve our service standards and improve retention.

Cost cutting

“Whilst substantial reductions have been achieved in the key areas of staff and occupancy costs, in view of the current economic climate, the group will continue to concentrate on costs, whilst maintaining focus on organic growth and new projects over the next 12 months.

London market

“The ongoing revitalisation of COBRA London Markets, our Lloyd's broker, continues to show improvement in operating profits, culminating from both a decrease in expenditure, growth in retention, new business and credit write backs.

Networks

“COBRA Network's gross written premium across its membership via our selected panel of insurers continues to grow against the back drop of increased competition.

“The Network offering was completely re-vamped in 2009, to provide four distinct facilities. This now allows us to cater for the start-up operation (COBRA Genesis), the market standard network (COBRA Classic), a managed income target network (COBRA Choice) and a finance option with network benefits (COBRA Capital Release).

“The results of these additional initiatives continue to create interest in our services from potential new broker members.