Jelf Group has reported a 10% improvement in operating profit in the six months ended March 2012 to £1.6m, up from £1.5m in the same period of 2011.
Of the total profit, £820,000 came from the group’s insurance operation.
The group also reported stable revenue for the first half of the financial year, to £35.2m, compared with £35m in the same period of 2011.
Revenues for the insurance business grew by 4% in the period, to £23.3m (2011: £22.3m), and represent 66% of the total group revenue.
EBITDA for the insurance segment grew by 11% to £2.9m in the six months ended March 2012, compared to £2.6m reported in the same period of the previous year.
Alex Alway, group chief executive, said that improvements previously seen in motor had dropped away as insurers reappraised claims provision, and that no other improvements in rating had been detected.
He commented: “New business performance continues to improve with a 14% increase year on year.
“We continue to focus on tightly managing the margins whilst looking to build our sales capability through investing in new account executives to continue the sales momentum over time.”
Mr Alway said Jelf had recruited an affinities team from a competitor, and would be expanding into affinities in the second half of 2012: “We will build on that team. Affinities is a hot area for brokers at the moment.”
He said this new venture was expected to lead to growth in 2013, and added: “We plan to continue to improve our margins despite a lack of improvement in the rating environment.”
The broker will improve margins by making more efficient use of systems, utilising the Acturis system more effectively, said Mr Alway.
He continued: “Hopefully this will free up staff within Jelf to spend more time with clients and capture more business.”
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