Insurer Towergate reports fall in income to £87m, down 10 per cent, in third-quarter 2015 results
Towergate Insurance announced today that it has seen its group income topple to £87m for its third quarter of 2015, down 10 per cent compared to £97m last year.
Income for the year to date was also down 10 per cent, falling to £271m for the nine months ended 30 September 2015 from £300m for the same period last year.
Towergate’s Manchester Small Business Unit, which deals with premiums of less than £5,000, has seen a particularly weak performance, with income down 36 per cent in the year to date.
“Our financial performance has been impacted by a well documented period of instability,” said David Ross, chief executive officer (CEO) of Towergate.
“However, Towergate has proven to be incredibly resilient, with a significant number of clients retained and signs now that the business is stabilising, giving us a strong base to build on.”
The results are the first released since Ross was appointed chief executive at the start of November.
Ross continued: “It is clear that challenges in infrastructure are going to take some time to fix, but we are a long way down the road in developing a clear set of priorities and with supportive long term investment secured, I and the rest of my team firmly believe that we can build a sustainable, integrated business.”
In February this year, Towergate reached an agreement with its senior secured creditors for recapitalisation and to begin a financial restructuring project.