Swinton positive despite cost of upheaval
HIGH street insurer Swinton saw restructuring costs and a £7.4m mis-selling fine dent last year’s profits.
Figures released by the company, which is owned by French group Covea, show post-tax profits fell from £18.9m to £14.1m on revenues of £304.6m, up 1%.
The group, which has around 4,000 staff, has been shrinking its branch network and with the aim of having fewer, larger sites. At the end of December 2012 it had 576 branches but it wants to cut this to 400 by the end of 2014 through a branch merger programme.
Last year it was hit with the mis-selling fine by the Financial Conduct Authority for the way it sold “add-on” policies such as personal accident or home emergency cover.
It must also pay back £11m to customer and the episode has prompted a cultural change at the company which has seen profits fall as it has abandoned aggressive sales – pre-tax profits fell from £52.1m in 2011 to £28.7m the following year.
Chief executive Christophe Bardet said: “The financial result is pleasing in the context of major changes in the insurance market and the regulatory environment in 2013. In 2014, we renewed our commitment to our unique multi-channel model and stronger and bigger branches, and returned to national television advertising.
“The ambitious investment programme is contributing to our long-term growth strategy to improve customer outcomes and deepen customer relationships. We are confident that our investment will help us to realise the full potential of the group over the next three to five years.”
