Cyber insurer CFC doubles profit to £1.8m

Specialist lines underwriting agent, CFC Underwriting, today reported its eighth successive year of growth. In the twelve months to September 2008 the business increased revenue by 65% and doubled operating profit to £1.8 million.

CFC’s managing director David Walsh said: “Reporting eight successive years of growing revenues and profits represents an outstanding achievement against a backdrop of continuing pressure on rates. I firmly believe that our success is due to two things. Firstly, we are obsessed with providing our brokers top quality, up-to-date products.

“Secondly, we constantly strive to provide the very best service levels in the market. Most of our business is in the SME sector and it is extremely hard for brokers to make a good margin out of this business unless they are dealing with an insurance partner who helps them to become more efficient.”

In growing its business over the past 12 months, CFC has also grown its team by more than 30 per cent including the appointment of Graeme Newman as business development director.

Graeme says: “Every product line beat its target this year. These results are even more pleasing given the fact that we undertook an extensive product development programme at the same time. We not only brought new products to market, but we also revamped our existing range and extended our product reach. All of our SME product lines are now available in all the major territories in which our partners operate.”

Focusing on the year ahead, David Walsh said: “We are targeting 40% growth and plan to recruit more people. This might seem ambitious in the current climate, but we see real opportunity across all lines of business.

“In particular, developments in the cyber insurance market are gaining momentum following the many well publicised privacy breaches in the UK and US and new legislation in the US. This area has now become a minefield of litigation for US companies, and we expect the EU to follow suit over the coming 12 to 24 months.”