Howden’s revenues jump 60 per cent as insurance broker looks to capitalise on ‘very turbulent’ market
Insurance broker Howden today posted “record” results for 2022, reporting a 60 per cent increase in revenue, with its chief executive adding that the firm was primed to further profit from the economic uncertainty heading into 2023.
The insurance broker’s chief executive David Howden told Morning Wire has said the London firm is primed to capitalise on the “very turbulent market” as customers increasingly seek out better value insurance deals.
The chief executive explained that Howden was in a solid position to help clients navigate the “challenging times” ahead, as inflationary pressures have caused insurance premiums to soar.
Inflation has driven up the costs insurers face in fulfilling claims, particularly in fixing damaged buildings and repairing and replacing damaged and stolen cars in a movement that has caused premiums to rise.
The global economic downturn has also hit companies’ profitability in a shift that has pushed them towards brokers in their efforts to reduce insurance costs and seek out better deals.
“You’ve never seen such pressures on the insurance market,” Howden said to Morning Wire “Our job as brokers is to find the very best deal for our clients.”
Howden’s comments came as the insurance broker today posted “record” results for the financial year 2022.
The London broker saw its overall revenues increase 60 per cent to £1.841bn on the back of fast-paced organic growth and a far-reaching M&A splurge.
The increase in Howden’s revenues came as the firm completed 31 acquisitions in the past financial year, in a push the boosted its headcount by 4,100 staff.
The M&A spree has in turn seen Howden become the UK’s largest insurance broker, employing 5,000 staff across 160 offices.
The uptick in Howden’s revenues saw the broker’s earnings before interest, tax, deprecation, and amortisation (EBITDA) increase 69 per cent £565m.