Insurance group reports soaring sales and major tech investment

Principal Insurance has reported a 63% increase in turnover for its 2016-17 financial year as the specialist broking group benefited from strong organic growth across all its main lines of business.

Gross written premium (GWP) for the year rose by 50% to exceed £15m.

This was driven by growth, not just across its core motorcycle and van business, but the group’s fast-expanding specialist motor, commercial and Dublin operations.

These all secured double-digit growth with the Dublin division now claiming an estimated 20% share of the Irish motorcycle insurance market.

Operating profits of £15,000 (£327,000) were subdued by a £200,000 investment in software and trading systems, relocation of the group’s Manchester HQ and a significant increase in payroll at all levels of the business.

The group more than doubled its staff from 30 to 80 during the year and now employs 130 people in Manchester, at its Lancaster-based specialist car and motorhome division, and Dublin offices.

Executive chairman Damian Keeling said: “We are very pleased to have again delivered substantial growth in line with our business plan.

“This pattern has been maintained as we continue to benefit from a significant expansion in our current financial year.

“It’s gratifying, too, to already be seeing returns on what has been a major reinvestment of profits in talent and technology.

“We were able to wring the very most out of a near £200,000 investment in IT by primarily exploiting in-house expertise in developing new software and trading systems.

“This means that the group can now be much more agile and responsive to changing market conditions, with the ability to swiftly devise and promote products that address specific customer requirements in the niches in which we operate.”

He added that the group would continue to invest in systems development which it sees as its highest priority, with staff numbers unlikely to significantly increase in the short term.

“The investments we have made and those we plan to make will ensure Principal is fit for the future.

“From here on in our focus will be on investing in, and finessing, systems and processes to ensure that the first class team we have assembled across all our operations can deliver further solid growth over the next few years.

“This is all about being a truly smart business that can realise maximum benefit from trading, both online and in the ‘real world’.”

Planned developments include further integration of industry-wide databases such as those relating to driving licences, no claims bonuses and claims histories.

This will assist the broker in delivering best value quotes and in supporting anti-fraud initiatives championed by the Financial Conduct Authority and British Insurance Brokers Association.

Currently Principal serves nearly 50,000 policyholders but reports its investment programme will ensure it can efficiently and effectively administer in excess of 100,000 policies.