Prime Professions profit up 53% despite rate cuts

Professional indemnity (PI) broker Prime Professions has boosted its profit by 53% despite revenues being hit by falling PI rates.

Prime’s profit before tax for the year to 31 March 2012 was £469,319, compared with £307,174 the previous financial year.

The broker said in a Companies House filing that amid “extremely competitive” conditions, reduction in PI rates across most professions had hit revenues in the 2011/2012 financial year.

But it added that this had been offset by new business growth. As a result, revenues were flat at £8.9m.

During the year, Prime expanded into directors’ and officers’ liability insurance, increased its market share of the Irish solicitor market and opened a new office in Leeds.

In addition, the broker cut its administrative expenses by by 2.5%, or £222,170.

Prime’s improved profit came despite an interest bill of £41,208 as a result of a new £3m revolving credit facility from HSBC. Prime paid no interest the previous financial year.

The new credit facility replaced an existing arrangement with immediate parent Prime Professions Holdings.

Prime also has a further £2m available from its ultimate parent, Primary Group, if it needs additional financing to further its growth objectives.