Brightside profits up 11% despite fall in policy sales

Broking group Brightside boosted its profits by 11% during the first half of 2012 despite total policy sales falling 5% over the same period.

Brightside posted a net income of £5.6m for H1 2012 (H1 2011: £5m), while revenue also climbed 10% to £43.6m in the first half of the year (H1 2011: £39.8m).

But total policy sales dropped to £227,610 in the first six months of 2012 (H1 2011: £240,665).

Online home policies slumped 74% at £2,570 in the first half of the year (H1 2011: £9,976) due to price increases enforced by underwriter Aviva.

eCar policy sales rose 11% to £78,221 in the first half of the year (H1 2011: £70,561), while eBike polices were up 1% at £23,279 over the same period (H1 2011: £22,990).

Conversely, van insurance declined 6% to £58,653 in H1 2012 (H1 2011: £62,486).

Online home policies were down 74% at £2,570 in the first half of the year (H1 2011: £9,976), as were GAP policies, which suffered a drop of 31% to £3,744 (H1 2011: £5,455).

Brightside had sold 2,300 policies by the end of last month under its affinity product deals with Asda Money and Debenhams.

During the period, the broker’s premium finance unit processed 130,487 loans, representing £81.3m of new premium finance (H1 2011: £67.3m).

Brightside chief executive Martyn Holman (pictured above), who replaced Arron Banks in June, said: “The board views the prospects for the remainder of 2012 and beyond with confidence. Our long-term aim is to build an outstanding major insurance distribution business. The strong performance in the first half is another important step in this direction.”

Banks himself stepped down to lead a private equity bid for the company with a planned swoop for van broker Autonet if it is successsful.

The company said it expects to report increased growth in the second half of 2012 over the first half of the year as its core broking businesses, including SME and motor, continue to grow in line with expectations, boosted by its white label partnerships and the increase in its premium finance loan book.

Brightside declared an interim dividend of 22p per share for the period ending 31 December 2012 to be paid to shareholders on 26 October 2012.