Rate increases and improved margins contribute to broker’s progress.
Profit at Lark Group, the commercial broker in which insurer Groupama owns a majority stake, leapt by more than 60% last year.
The South East broker reported pre-tax profit of £3.3m for the year to 31 March, up from £2m in the previous year, according to documents filed with Companies House.
Turnover rose 14% to £18.3m on the back of acquisitions and organic growth.
The broker said: “The group continues to make good progress. In the general insurance sector, the market conditions remained challenging throughout the year, while in personal lines some rate increases were experienced in some certain classes of business in the last few months of the year.
“Margins have improved this year due to turnover and interest income growth and reductions in certain areas of the cost base this year, notably emoluments to directors.”
During the financial year, Lark acquired Somerville Insurance Services and Griffiths Good & Company. In April, after the financial year closed, it acquired Grosvenor Court Insurance Services.
Lark chairman Graham Lark said at the time of the Griffiths Good acquisition that the company’s strategy was to continue to grow by 20% every year.
He insisted the company would focus only on attractive deals and not just acquire for the sake of rapid growth, to expand its business in the South East.
Lark provides insurance broking services to a cross-section of corporate and personal clients, including high net worth individuals. The broker employs about 250 people in six offices across London and the South East.
Groupama acquired a majority stake in the broker in August 2007. The insurer also owns a majority stake in Bollington Group and acquired Carole Nash, a personal lines specialist, outright.
