Swiftcover agency arm that places business with AXA’s underwriters falls into a £2.7m shareholders’ deficit

Iggy Pop Swiftcover

AXA-owned Swiftcover Insurance Services slipped to a £10.7m loss in 2011, compared to a £291,000 profit in 2010, latest accounts reveal.

Swiftcover Insurance Services made a gross profit of £52m (2010: £48m), but was pushed into the red by rising distribution costs £29.3m (2010: £22.1m) and administrative expenses £36m (2010: £25m) as it chased growth.

The accounts reveal that Swiftcover’s gross written premium rose 54%, to £478.1m (2010: £308.6m), and it grew policies to 1.2 million (2010: 829, 377), as the agency ramped up the business it placed with AXA’s underwriters.

Swiftcover Insurance Services ended the year with a shareholders’ deficit of £2.7m, compared to an £8m equity in 2010.

Swiftcover Insurance Services sells and markets motor policies that are then underwritten by AXA. AXA’s private motor book posted a combined ratio of 121% last year - 15 points off the market average.

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