Bluefin earnings up 17.2% amid cost-cutting and revenue rise

Bluefin Insurance Group grew its earnings before interest tax depreciation and amortisation (EBITDA) 17.2% to £17.8m in 2011 (2010: £15.2m). Pre-tax profits grew 16.4% to £11.6m.

The AXA-owned broking group was helped by a reduction in operating expenses to £85.3m (2010:£87.2m) and net operating revenue grew marginally to £103.2 (2010: £102.4m).

The reduction in overheads has been achieved in a year when Bluefin restructured its business. It closed 17 finance functions at the former Smart & Cook offices, which put 31 jobs at risk. The move paved way for a new centralised function in Milton Keynes with 14 new staff.

In terms of contributions from divisions, personal lines, commercial and corporate all grew their earnings, although the contribution from Bluefin Partner Broking Division decreased.

Overall, the EBITDA contribution of divisions increased 9.5% to £33m.

The statutory reporting of the group showed an £11.4m loss once the dividend to AXA, amortisation charges and restructuring costs were factored in.

Bluefin chief executive Stuart Reid (pictured) said: “The world continues to be an economically challenging environment, with latest forecasts suggesting this will be the case for the foreseeable future.

“The market within which we work continues to be highly competitive and gives no indication of changing in the short term.

“Despite this, Bluefin has had a very successful year in 2011 with stable revenues and improved operating margins. 

“This, coupled with the continued support from our parent, ensuring we have no external debt, provides us with what we consider to be a unique and extremely positive position to be in the UK broking market.”