Investment returns help push Abbey Protection profit up by 4%

Abbey Protection made a profit after tax of £7.9m, up 4% on the £7.6m the company achieved in 2011.

Total revenue grew by 7% to £38.7 in 2012 from £36.2m in 2011, bolstered by an increase in investment returns, which reached £42.6m (2011: £39.4m).

However, the broker’s claims ratio rose to 69.0% from 65.2% the previous year.

Abbey Protection chief executive Colin Davison said: “The granting of an alternative business structure (ABS) licence at the start of 2013 and the subsequent acquisition of Lewis Hymanson Small Solicitors will finally enable us to provide a wider range of legal services to our SME clients. This, combined with the on-going development of our specialist tax services, our balance sheet strength and continued risk management focus, means we enter 2013 well positioned to deliver further profitable growth.”

Abbey Protection chairman Tony Shearer added: “Our shareholders continue to benefit from the progressive distribution policy, with the second interim dividend, payable on 11 April, making a total distribution in respect of 2012 of 4.9p a share, representing an increase of 11% over 2011.”