Business shrinks but Towergate enjoys return to profit in Q3

Broker Towergate Insurance, in its third quarter results, enjoyed a big increase in profits and its first quarter of positive year-on-year growth in adjusted EBITDA since it restructured the business in early 2015.

Towergate’s adjusted EBITDA, which represents management’s view of underlying profitability calculated as EBITDA adjusted for exceptional items, for the three-month period ending September 30 was £19.4 million, an increase of 5.9 percent year-on-year.

Its EBITDA not adjusted in this way was £22.5 million in the quarter, a big turnaround compared with a loss of £6 million, which it made in the third quarter of 2015.

However, the business did shrink slightly in the quarter. Its income was £80.8 million, a 4.8 percent decrease on the same period a year earlier.

David Ross, CEO of Towergate, said: “Towergate has reached a milestone in its recovery, with our first quarter of positive year on year growth in adjusted EBITDA since our financial restructuring. This performance has been driven by a continued improvement in underlying profitability driven by strong cost control and stabilising income.”

Ross added: “We have maintained our leading market position across many of our businesses despite tough market conditions and have achieved our first quarter of year-on-year growth in underlying profitability. These results demonstrate the strength of our business, our specialist knowledge, local footprint and strong customer relationships, all of which set Towergate apart.

“Our steadfast focus on our people is reflected by a further improvement in employee retention as we strive to make Towergate a better place to work and join up our culture and business strategy. We continue to recruit top talent to expand our market expertise and drive sustainable new business. This is exemplified by the launch of our new London market proposition, Bishopsgate, at the beginning of the month.”