But firm says motor broking growth ‘challenging’ because of falling rates
Vehicle recovery firm and insurance broker NCI Vehicle Rescue made a profit after tax of £633,164 in the year to 31 March 2013.
This was more than three times the £199,447 it made in the 2011/2012 financial year.
The main source of the profit growth was a 51% jump in turnover to £6.6m (2012/2012: £4.4m). The profit growth came despite a £250,000 write-down of the value of NCI’s investments.
NCI chairman Richard Jackson said: “The results demonstrate an excellent achievement by everyone at NCI; each department has made a significant contribution to a record year.”
He added: “Although we have done well this year, management has now implemented ambitious new targets for the period ahead that we are again determined to meet.”
Breakdown growth
NCI increased both turnover and client numbers in its breakdown business. It said pricing had remained stable, and claims ratios were in line with expectations, which allowed the unit to contribute to group profits.
New motor schemes
In its motor insurance broking segment, NCI said premium rates continued to fall across the industry, which made increasing sales “challenging”.
The company said: “By developing new routes to market and additional motor products, we have been able to build client numbers and considerably increase both turnover and sales. We remain cautious in our approach, as we seek to maintain profitable accounts, which in turn will ensure support from our insurance partners.”
NCI said it was continuing to develop new markets for motor insurance and planned to launch a new scheme every six months for the next two years.
Pet to overtake breakdown
NCI said the pet insurance market continued to grow and that it was working on a number of new opportunities, including a wholesale product that can be marketed by other organisations but controlled by NCI.
The company added that because of its future expansion in pet insurance, the division’s turnover was likely to exceed that of the breakdown business within 18 months.
The company said: “This is a priority area for us to expand over the short to medium-term as we believe it will offer healthy returns.”
Claims administration
NCI now offers claims services to companies outside its own group, and says it is growing its client base.
The company said: “As our operation works on a 24-hour basis and deals with emergency situations, we are well placed to expand this service further. We intend to progress this part of the business and increase the number of clients using our services.”
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