Investment in claims boosts Romero profits by 23.2%

Claims handling has boosted Romero Insurance Brokers’s profits by 23.2%, to £448,020 from £363,662.

Turnover also rose 18% to £5.4m in the 12 months to 30 April 2014 from £4.6m in 2013.

Sister company Club Insure also saw its profits triple, to £312,861 from £101,565, while turnover jumped 28.5% to £2.3m from £1.8.

Romero Managing director Simon Mabb said the growth had been driven by the broker’s focus on staff and client retention, attracting new business, as well as investment in claims.

Over the past 12 months the broker has taken on around 20 new brokers and account handlers, more than half of which have come from consolidators.

Mabb said: “We have picked up good quality individuals that used to work for independent business, but are now working for consolidators, and want to get back to working for an independent.

“We have invested a lot in our claims in both companies. Claims is a key part of our proposition. We really work hard for the client because we want to make sure we get the best result for them.

“It’s very difficult when you have a claim, particularly a large one. If you don’t have a broker that adds value to that process then the client can miss things, but if you have a broker that helps them through the claim, they can ease the process with the insurer.

“If you have clients who have had significant claims paid that you are asking a prospect to call [for a reference], it really adds to and rubber stamps what we are saying.”

The broker also has a separate new business operation, led by chairman Justin Romero-Trigo, to pro-actively find new customers.

“We have been having contact and dialogue with these customers for maybe eight to ten years, so it may be something that has changed for them or their contacts have moved on,” Mabb added.

“We spend a lot of time and effort making sure they understand who we are and what our brand is and what we can do differently.”

Romero has 125 staff across its four offices in Manchester, Leeds, Stockton and Halifax and plans to hire more people over the coming months.