Insurance broker Kwik-Fit Insurance Services (KFIS) made a £4.8m loss for 2010 as a result of a £13.4m charge related to its acquisition by Ageas UK.
The 2010 loss compares with a 2009 profit of £9.9m.
The £13.4m charge relates to the write-off of a £14.6m intercompany debt owed to KFIS from Kwik-Fit GB. This was partially offset by the write-off of a £1.3m amount that KFIS owed Kwik-Fit GB for the purchase of a computer system, called Premier 2, which is owned by the Kwik Fit Group.
KFIS said that as these are one-off charges, they do not reflect the underlying trends and sustainable profits of the business.
Ageas UK agreed to buy Kwik-Fit Insurance Services from Kwik-Fit GB in July 2010 for £215m. The business was included in Ageas UK’s results from the beginning of August 2010.
Excluding the charge, Kwik-Fit Insurance Services performed better in 2010 than 2009. Profit on ordinary activities before exceptional items came in at £11.9m in 2010, up 9.3% on 2009’s £10.9m.
Turnover increased 4% to £69.7m from £66.9m, partly offset by a 2.3% increase in the cost of sales to £55.2m from £53.9m.
"We’re pleased to have recorded another year of strong trading results," Kwik-Fit Financial Services managing director June Lynch told Insurance Times. "The personal lines insurance market continues to prove incredibly challenging but in placing our customers, our insurer partners and our people at the centre of our business, we’ve been able to deliver profitable growth whilst providing a high quality service."
No comments yet