Swinton gets new boss as Smith steps down

Swinton chief executive Patrick Smith is stepping down to become chairman and will be replaced by Peter Halpin, the current deputy chief executive.

The announcement comes as Swinton Group reported its 2008 year end results, where it posted a 4% increase in profits to £50.1m, from £48.3m in 2007. Premium income rose 15% to £763.9m.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 5% to £75.5m and net income rose 13% to £233m. The company said it now has 3.25m policies, a 25% increase on 2007.

Peter Halpin, who is to take over the chief executive role from Patrick Smith, joined Swinton in 1990 and held a number of board positions including finance director, operations director and franchise director, before being appointed deputy chief executive in 2005.

Swinton said it has increased its overall number of shops to over 580 - up from 470 in 2007 - and said itis continuing to invest in the high street through both acquisition and organic growth.

It acquired IAG's Equity branch network in December 2008 in a £50m deal which saw Swinton buy all 91 branches as it sought to disengage from the UK's retail insurance market.

Swinton also made 28 acquisitions in 2008, including two major commercial brokers bringing over 90,000 new policies.

The company said Swinton Commercial, its commercial arm, has become its fastest growing division and plans are in place to continue this growth and expand to £150m gross premium income over the next three years from the £75m achieved in 2008.

Patrick Smith, outgoing chief executive of Swinton said: “I have had lots of fun at Swinton. It has been a pleasure to work with a dedicated group of professionals to build a great business in a fiercely competitive and changing marketplace. I have chosen to step down from the top job at Swinton in its 52nd year of trading and I am confident that Peter will successfully grow and develop the business in the coming years."

Peter Halpin, Swinton's new chief executive, says: "The company as a whole has an ethos which sets us apart from others in the financial services sector. That ethos is one centred around a strongly-held belief that consumers appreciate having a clear and fair choice with regard to how and where they purchase their insurance. Our significant investment in both on and off-line channels will continue into 2009 and beyond and customers will always be able to pick up the phone and discuss their insurance matters with our advisers.

"I speak for the whole company when I say that we are more than delighted that Patrick has decided to stay on as Chairman. He has been a popular and charismatic leader, and will be a hard act to follow as CEO.

“Looking to the future, Swinton has been successful by going against the received wisdom that the majority of modern consumers are totally price-driven and promiscuous when it comes to their insurance renewal. Our model has shown that this is not always the case.

"Much has been said about the current tough conditions, which are certainly challenging, but Swinton has continued to demonstrate the attraction of its multi-channel proposition and to see market share grow in an ever-competitive market.

“We expect further growth over the next five to ten years through a combination of organic growth, both on and offline, and more acquisitions.”