Swinton profits rocketed in year that bosses were axed

HIGH street insurance broker Swinton Group, which dramatically axed its entire management team last December , has reported strong turnover and profit figures.

The French-owned group, which is based in Manchester, said turnover in 2011 leapt 18% to £329.3m and operating profits before exceptionals by 80% to £73.4m.

In newly-filed accounts for Swinton (Holdings), the group’s parent company, no mention was made of the shake-up last year, which sent shockwaves through the sector and was TheBusinessDesk.com’s best read story of 2011.

At the time parent company Covea alleged that the five directors former chief executive Peter Halpin, finance director Anthony Clare, marketing director Nick Bowyer, operations director Jackie Ordish and IT director Adrian Hazeldine, had put their short term interests ahead of the company’s long term interests, resulting in a lack of confidence in them,

It raised concerns over  “performance-related share scheme payments” which were due to have been paid in the first quarter of this year, 2012.

The accounts for 2011 reveal that £1.1m was paid out during the year under an incentive scheme, up from £583.000 in 2010.

Accounts for subsdiary, Swinton Group also show that a payment of £1.239m was made to un-named employees as “compensation for loss of office.”

At the bottom line, after impairment costs and a share incentive scheme. pre-tax profits at Swinton (Holdings) still showed healthy growth of nearly 50%, climbing from £33.8m to £50.6m.

Swinton, which has nearly 600 branches and more than 4.2 million live policies, employed more than 4,500 people at the end of the year, (4,333 in 2010).

Reviewing financial performance chief executive Christophe Bardet said turnover growth had been achieved “both organically, though the continued growth of the online sales channel and the introduction of new products, and through the ongoing acquisition programme.”

Although the group showed good profit growth Mr Bardet said market conditions continued to be challenging, “with a lack of consumer confidence due to the general economic environment continuing to impact on renewal and cancellation rates.”