Year-end pre-tax profit hits £43m

The BGL Group (formerly the Budget Group of Companies) announced another set of record profits and substantial growth for its financial year July 2006 to June 2007.

The group delivered a pre-tax profit of £43 million, up 93 per cent on the previous year, which had also been a record performance.

Since the end of the financial year, the Group has reached a total of two million policies under management. At year-end, the number of policies had grown by 36 per cent from summer 2006

Peter Winslow, chief executive of the BGL Group, said: “We’ve enjoyed another spectacular year, and have ambitious plans for the next 12 months. The dedication and support of the excellent people within the business, and an entrepreneurial culture that means we can react quickly to changes in the market, have contributed to our success.

"As one of the leading UK insurance intermediaries, we are flexible and innovative, ready to launch new products and take advantage of new trends. As a result, our growth is sustainable for the long-term. This is a landmark result in the year in which we celebrate the 10th anniversary since changing our strategy from being an insurance underwriter to a broker.”

Highlights included:

Junction – provider of insurance services for affinity partners - Achieved 1,000,000 policies under management in August 2007, and secured long term contracts with Post Office, M&S Money and Auto Trader. – the price comparison website - secured partnerships with Simply Switch, MoneySaving Expert, Motley Fool and has launched a high profile TV sponsorship campaign with Channel Four Drama as part of a £60 million marketing campaign.

Bennetts – the motorcycle insurance specialist - achieved a 21 per cent market share and reached 200,000 policies.

Peter Winslow said: “In many areas we have actually exceeded the goals we set ourselves. As a result we’ve upgraded our targets for the next financial year and feel confident that it will be another strong performance with additional growth. The Group is expanding at a rapid rate – we will continue to take on more people and thanks to our ongoing development it’s a company that can offer exceptional career opportunities. Of the new senior management positions, 48 per cent were awarded to people already within the business. We’re confident that our outstanding people will help deliver another record performance next year.“