Insurer reports soaring profits
Manchester-headquartered Principal Insurance has reported a near 500% increase in post-tax profit for its 2015-16 financial year.
The company recorded retained profits of £318,480 (£54,643), up 483% on the previous year.
Pre-tax profits grew at an even faster rate rising to £327,109 (£21,622) as turnover increased by upwards 140% to hit £3,772,253 (£1,567,440). Gross written premium breached £10m, double the tally for the previous year.
The figures follow the strong performance recorded the previous year in which the group, founded by Dave Bowcock in 2011, broke into profitability 12 months ahead of its business plan.
Executive chairman Damian Keeling said: “This tremendous set of figures highlights the robustness of our business model and its potential to deliver significant and sustained long-term growth.
“Our focus on specialist markets and accompanying commitment to attentive, personal service runs counter to the volume and price-led digital trend.
“Our proposition is value-led, it’s about ensuring our clients benefit from appropriate and effective cover, whether they’re looking to insure a custom motorcycle, prestige car or works van.”
Keeling said that all its lines benefited from significant growth with the group now serving over 30,000 customers.
Motorcycle insurance, which was the first line the group launched, benefited from increased marketing which included the first title sponsorship of national bike show.
Similarly, Principal’s specialist classic, custom, kit, replica and prestige car insurance operation saw massive growth courtesy of a highly targeted marketing drive.
During the year the group’s Dublin operation, which only opened in April, 2015, claimed a near 10% share of the Irish motorcycle market. It has since expanded its offer to embrace custom, classic, trikes and high value bikes as well as launching private car and home insurance lines.
Reporting strong current trading, Keeling said: “We are recording and forecasting solid growth for this year across what are now our established lines of motorcycle, van and specialist motor insurance.
“One of our more exciting prospects though is our commercial operation which is smashing targets and demonstrating that the success of our model will not be restricted to personal lines.”
Based in Manchester and led by Matthew Byrne, the commercial division now offers an extensive portfolio that includes motor trade, fleet, courier, public liability, employer’s liability and SME business insurance.
