Towergate posts £58m loss in H1
UK broker Towergate has reported a £58 million loss in the first half of 2015, driven by financial restructuring costs and reduced operating earnings.
Towergate’s operating earnings fell 40 percent in the first half of this year to £39 million, compared with £65 million in the first half of 2014, while its income fell 10 percent to £184 million in the half, compared with £204 million in the same period of the prior year.
Scott Egan, interim group chief executive officer, said: “The context for our performance is well known, but what is important is that in Q2 we began to see the first signs of improvement as the rate of year on year decline in our organic income improved.
“In addition we signed another long term capacity deal with LV, following the agreement we announced with Allianz in May. We also signed a number of strategic insurer deals which were delayed from 2014 due to our financial restructuring.
The performance of the business is not where we aspire it to be, but there are encouraging signs only three months after the completion of our financial restructuring.”
John Tiner, Towergate chairman, said: “The group has renewed confidence in its strategy to lead in the specialist insurance and underwriting markets. The recapitalisation of the business has reinforced Towergate’s position as a formidable presence in UK insurance, re-emerging more determined than ever in its ambition to be a leading UK insurance broker.”
