Towergate’s new holding Ardonagh sees profitability rise in H1
The Ardonagh Group, the new insurance intermediary that brings together Autonet, Chase Templeton, Direct Group, Price Forbes and Towergate has improved its profitability in the first six months of 2017.
The Group was created in June 2017 and posted a 21.3 percent year on year increase in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) in the first half of 2017 to £47.5 million.
Adjustments included loss or (profit) on the disposal of businesses, group reorganisation costs and regulatory costs, among others.
John Tiner, chairman of The Ardonagh Group, commented: “This is a strong set of results, particularly in the context of the substantial activity undertaken by the team to launch the Group earlier this year, including the successful completion of a refinancing to optimise our capital structure.
“We have delivered a solid operating performance with good underlying organic growth and significant improvement in Adjusted EBITDA, while accelerating our investment plan and aligning resources with our new segmental operating model incorporating Distribution, Wholesale and MGA & Services.”
Operating costs have remained stable at £195 million in the first half of 2017 while income grew 3.7 percent to £252.4 million.
The company said that the transformation plan was ahead of schedule with £40 million annualised savings delivered and £19 million completed in the period.
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