Swinton maintains steady progress
INSURANCE broker Swinton Group made steady progress in 2010, with pre-tax profits edging up by just over 1% to £32.4m and sales increasing by 6% to £278m in 2010, according to newly-filed accounts.
The Manchester-based company, which is owned by French group MMA Assurance Mutuelles, said that sales growth occurred through a combination of both organic growth and through its ongoing acquisition programme.
The company said that organic growth had been achieved both through improving online sales and through the introduction of new products into the marketplace. It also continued to acquire smaller chains of high street brokers in a bid to consolidate its position as the UK’s major high street broker, although the total number of branches from which it operated dropped by 23 to 590.
A directors’ report accompanying the accounts states that positive growth had been achieved despite “challenging” market conditions, which is affecting consumer confidence.
It also said that it had been spending more on marketing, which “impacted short-term profitability” but had developed greater customer numbers for future growth. The number of live policies on Swinton’s books grew by 11% to 4.2m.
“The outlook for 2011 is positive and the directors remain confident that the business model is well placed and able to perform strongly,” the directors’ report said.
It added that the board expects future growth in turnover “through both the development of the eisting business and the introduction of new products and for benefits to be derived from the increase in live policies achieved in 2010”.
Net assets increased by 7% to £176.7m.
In July, Swinton Group announced that it had completed the acquisition of Swindon-based Brunsdon Westinsure, which was its 11th buy-out since the start of the year. The deal gave Swinton its 34th commercial insurance branch in the UK.
