Cobra Group delivers stable revenue

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The organisation reported a loss in the year due to costs relating to the PIB deal but all other metrics showed growth.

Alto Insurance Group – the holding company for Cobra’s network, London Markets, underwriting and insurance brokers businesses – delivered revenue growth to £14.8m in 2019 (2018: £14.4m).

Its results for the year to 31 March 2019, published on Companies House, also saw it report Ebitda of £1.5m, which edged up from 2018’s £1.4m.

Commission and fees also went up to 3.7% from 0.8%. Operating profit before exceptionals was £744,764, a lift compared to the £645,311 posted last year.

Loss
However, the organisation recorded an overall loss after spending £2.5m related to the deal which saw PIB buy the business in May 2019.

The loss before tax was £2.1m (2018: £516,934 in profit).

Deal
Insurance Age revealed in June this year that PIB had bought Cobra in a move that would take its GWP to £900m.

In the document, CFO David Stanley commented: “I am very pleased that PIB has chosen to acquire and invest in the group.

“The investment planned by PIB creates an exciting opportunity for us to strengthen and further develop the business.”

Since the deal, PIB has pledged to keep the Cobra brand but there have been some changes in management.

Management
CEO Steve Burrows stepped down following the deal. He remains with the business as a consultant. Stanley is also staying with the business in a consultancy role.

Former director of broking and placement at PIB, Andy Tedstone, took on the CEO responsibilities in July 2019.

At the time, Tedstone told Insurance Age: “I am committed to ensuring the independence of the network whilst leveraging the wider PIB Group position to make greater resources available to our members.”

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