SSP profits up 7.3% 'in difficult year'

SSP has reported an increase in operating profit (before amortisation of goodwill, reorganisation, share option expense, interest, and taxation) to £16.4m on revenues of £76.7m, up 7.3% and 19.1% respectively compared to the prior year, in the group's results for the year ended 31 March 2009.

SSP said the results reflect the drive from insurance organisations during the recession to improve operational efficiency and service, whilst reducing their cost base.

Highlights include:

• Revenues up 19.1% to £76.7m (2008: £64.4m)

• Operating profit increased by 7.3% to £16.4m (2008: £15.3m)

• Revenue in the UK Broking Division up 8.5% to £49.2m

• 44.4% growth in Insurer Division, revenues to £27.6m

• International revenues up 67.4% to £13.0m

In the broking market, brokers have looked to improve business performance and deliver cost savings by rationalising the number of IT systems and outsource the management of IT, the company claimed. In SSP’s UK broking division, it achieve a 20% growth in users on its fully outsourced managed service solution, 21 for Broking and an 8.5% increase in revenues to £49.2m.

SSP’s insurer division saw revenues grow by 44.4% to £27.6m as insurance companies worldwide looked to refresh their operating models.

Laurence Walker, chief executive of SSP said: "Although many IT change programmes stalled in light of the economic downturn, the insurance industry has shown great resilience and continued to invest in IT to improve performance. The growth in eCommerce projects by both brokers and insurers has been particularly strong.

“During the period we have invested in our own IT infrastructure, implementing an innovative customer service management system to deliver 24/7, ‘follow-the-sun’ support, matching the needs of our global customer base and making us more responsive to our customers’ needs.

"Despite the continued uncertain economic climate we are in line with our targets for this financial year and expect insurance organisations to continue to invest in IT. The deals we have done already this financial year with Swinton, Bluefin and Lockton in the broking market and Calliden, Denplan and Absa in the insurance company systems market are testament to this.”

David Rasche, chairman of SSP, added: “This has not been an easy year with the background of worldwide recession, but we have again grown our business significantly. The recession has seen insurers and brokers of all sizes turn to modern technology to help reduce costs and improve processes. During this period we completed a number of major projects, in personal and commercial insurance e-trading, installed a number of new broking and insurer systems and have also seen the first major sale of our InsureJ insurance company solution.

“Having fully integrated our previous acquisitions we have propositions and products that are appealing to brokers and insurers of all sizes, across the globe. In the current world economic climate, the financial stability and funding provided by Hellman & Friedman will enable us to continue to invest in our products and grow both organically and through further strategic acquisitions.”