Profits hit £3.7m at AI Claims

AI Claims Solutions, the Lancashire company which handles motor insurance claims on an outsourced basis, has increased pre-tax profit by 42% to £3.7m.

The Blackpool-based company also increased revenues by 28% to a record £117.6m for the year to the end of June, from £91.9m a year earlier.

The company said new broker schemes had contributed to the uplift but added their impact had been partially offset by a fall in referrals in the second half of this year.

It added the schemes have strengthened Ai’s presence in the credit hire market with services provided on credit hire and repair cases increasing by 17% to 96,000. 

Gross margin of £21.7m was 30% higher than last year, driven largely by volume improvements and by margin improvements on both Ai’s hire and repair services, it said.

Steve Broughton, chairman, said: “It is a tough trading environment, with lower accident frequencies, mounting government and press scrutiny of the industry, insurer frustration and ongoing economic uncertainty and this will continue to challenge the business. 

“I am, however, confident that Ai, with its unique and flexible operating model and its experienced management team, will be able to continue on its path in a solid, resilient manner.  As well as further growth potential, there are also opportunities to identify and realise efficiencies in processes and costs by maintaining its strong focus on margin and costs.”