Towergate posts £10m loss

The loss, distinct from the figures in its quarterly bond holder report, was caused by the impact of writing off £14m of loan fees from a previous debt structure, according to the consolidator.

In May the company completed a £396m bond offering.

Gross written premiums for the business were stable at £1.58bn (H1 2012: £1.56bn) while income rose 3% to £225m in the first half of 2013.

Breaking the income figures down by division, Towergate delivered a 6% increase in half-year figures for retail to £132.4m.

And income in the underwriting division rose 4% to £47.2m when comparing the first half of 2013 with the same period of 2012.

Falls
However Paymentshield and the networks division both saw income fall.

The network division saw income slashed by 27% to £6.4m as Paymentshield's income slipped 1% to £34.5m.

Mark Hodges, group CEO at Towergate, said: "Our focus on building top-line growth continued to gain momentum during the first half of 2013 and the strong performance of the retail and underwriting divisions was particularly encouraging against a continuing difficult market backdrop.

He added: "Despite the reduction in network operating earnings, we believe that the business, the clear market leader in its field, has a significant role to play across the group."

And concluded: "We have a unique business model, combining scale and breadth of distribution with market leading positions in both specialist personal lines and SME insurance, and we head into the second half well positioned to deliver profitable growth in our chosen markets."

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