GUK Broking Services posts £2.3m after-tax loss
GUK Broking Services’ decision to transfer ChoiceQuote’s personal lines business to fellow broking subsidiary Carole Nash has cost it almost £7m.
As a result of the transfer, GUK, the holding company for insurer Groupama’s UK broking interests, had to write down the goodwill related to its investment in ChoiceQuote by £6.9m, a Companies House filing reveals.
GUK’s holdings comprise Carole Nash, Bollington, Lark and ChoiceQuote.
GUK’s total depreciation, amortisation and impairment charges increased to £13.5m in 2010 from £8.6m as a result of the charge. This increase in turn played a big role in GUK moving to a loss after tax of £2.3m in 2010 from a profit of £2.8m in 2009.
As previously reported, the directors of ChoiceQuote opened a consultation last year about the company’s structure following a business review by GUK. The future of 68 staff was to be decided as part of the consultation.
The consultation, which concluded in January, determined that ChoiceQuote’s personal lines business should be transferred to Carole Nash as proposed, and ChoiceQuote will focus operations on its Scottish office. The company will retain its north-western office, but it will handle a reduced level of business.
Although GUK made a loss in 2010, its individual broking units were profitable, generating a combined profit after tax of £9.3m (2009: £10.5m).
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