Rises in UK turnover and profit are showing international players that this market still has much to offer
The UK arms of international businesses appear to be performing relatively well, and the latest results for both Marsh and Groupama are no exception.
Today we revealed how latest results on Companies House show Marsh’s UK business had a good 2011. It was a strong performance, boosted by Marsh’s £135m acquisition of HSBC Insurance Brokers in 2010, of which it is now reaping the rewards.
Turnover jumped 18.1% to £669.9m, and a large chunk of this came from Marsh Brokers. This is the wholesale broking arm consisting mainly of business acquired from HSBC, such as the intermediary markets division, which included its Labyrinth and Spectrum offerings. It also includes Marsh ProBroker, the broker network offering launched in 2009 to target SME/mid-market regional business.
A 12.5% rise in pre-tax profits to £156.5m will keep Marsh’s US parent MMC content. Rival global broker Aon recently confirmed its commitment to the UK, particularly London, by announcing intentions to move its corporate headquarters across the pond from Chicago to Leadenhall Street. There has also been some speculation Marsh could follow suit, and the performance of the UK could well have a factor in this.
Groupama UK pushes profits up 20%
Meanwhile, Groupama UK received a timely boost when it announced its first-half results for 2012, yesterday. Despite the well-known troubles its Paris-based parent Groupama SA is having as a result of its exposure to the eurozone crisis, the UK arm posted a profit before tax and amortisation of £22.2m – a rise of 20% on the £18.5m profit it made in the same period last year.
Groupama will be hoping its results and stable financial position keep brokers onside after rating agency Standard & Poor’s cut Groupama SA’s financial strength rating to BB from BBB-, sparking concerns that brokers would stop placing business with the UK arm, which doesn’t have a standalone rating.
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