The broker’s chief financial officer says ‘we have carved ourselves a unique position in the market’

Broker PIB Group has reported adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of £26.7m for the 2019 financial year, representing a 50% improvement on its 2018 figure.

Published today as part of its financial results for the year ending 31 December 2019, PIB Group also recorded an adjusted EBITDA of £32.2m on a run-rate basis, which includes the 12 months’ pro forma effect of acquisitions completed during 2019, but excludes expected synergies.

The broker has also increased its revenue by 15% between 2018 and 2019, now recording a figure of £123.3m. Its gross written premiums for 2019 amounted to £986m and organic revenue growth was 8%.

PIB Group’s acquisition focus was also evident in 2019.

Key purchases last year include MGA Optis Insurances, the network-centric Cobra group of companies, health and safety consultancy Sue Smith, credit insurance specialist CMR Insurance Services and Cooper Solutions, a software firm for the retail automotive sector.

The firm’s chief financial officer Ryan Brown said: “PIB Group continues to go from strength to strength, which is testament to the hard work and dedication of all our people.

“While our acquisition strategy continues to garner most of the headlines, our cross-group collaboration and sustained market beating organic growth is facilitated by ongoing investment in our systems, processes and infrastructure, as well as our programmatic approach to the integration of acquired businesses, and our ability to attract market leading teams and individuals.

“As we enter our fifth year in existence, we are starting to demonstrate that we have carved ourselves a unique position in the market. One that combines the focus on client, service and specialist product expertise of niche brokers with the scale and diversified capabilities of larger brokers, thereby offering a credible and attractive alternative proposition to insurers and clients.

“This uniqueness will only increase as we embark on the considered internationalisation of the group over the coming months and years.”

Revenue split across PIB Group’s divisions:

  • Specialty (to operate as PIB Insurance Brokers from October 2020): 49.4%
  • London Market: 17.1%
  • Schemes and affinities: 15%
  • MGA (now known as Q Underwriting): 14%
  • PIB Employee Benefits: 2.7%
  • Network: 1.4%
  • Group central: 0.4%

Growth plans

PIB Group plans to continue its acquisition growth strategy into 2020, with five purchases already under its belt this year. This includes reinsurance broker Marx Re, specialist commercial broker RA Insurance Brokers and Croydon-based broker BK Insurance Brokers.

Brown continued: “What is exciting is that the full impact of the investments we have made to date are yet to be seen in the group’s financial results.

“Combining these with the strong pipeline of exclusive acquisitions in due diligence will lead to a step change in both our revenues and our profit margins by the end of the year.

“At a time of significant domestic and international uncertainty, the strength of our infrastructure and platforms, along with the exceptional nature of our people, will ensure that we are able to support our clients, adapt to changing market dynamics and remain resilient this year and into the future.”