22 May 2015 Insurance

Operating profits sink 57% at RMS

Risk modelling agency RMS posted a dive in profits for the first half of 2015, driven by costs related to its flagship product RMS(one).

RMS’ parent company, the Daily Mail and General Trust (DMGT), said that, as expected, the first half of 2015 was adversely impacted by the investment in RMS(one), RMS’ real-time exposure and risk management platform.

In an update in September 2014 the group said that RMS had delayed the rollout of the product until 2015.

“As expected, there was a significant increase in data centre costs forRMS(one) and a reduction in the capitalisation of expenditure in developing the product,” said DMGT.

RMS’ revenues increased by 4 percent on a reported basis to £91 million in the first half of 2015, compared with £88 million in the first half of 2014, but declined by 2 percent on an underlying basis.

Martin Morgan, chief executive of DMGT, said: “DMGT’s performance in the first half was in line with our expectations. Our international B2B companies increased their underlying revenues by 2 percent although underlying profits declined by 20 percent, primarily due to the expected investment in the new risk management platform,RMS(one).”

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