Tough trading pushes Bluefin to £5.3m loss

The after-tax loss at Bluefin Insurance Group, the holding company for Bluefin’s insurance broking businesses, widened to £5.3m in the full year of 2009 from £4.6m in 2008, Insurance Times can reveal.

Meanwhile, the after-tax loss at Bluefin Group, Bluefin Insurance Group’s parent within the AXA organisation, increased to £56.8m from £40.1m because of a £64.1m impairment charge at Bluefin Advisory Services related to its restructuring. This compares with a £40m impairment charge in 2008.

Bluefin Insurance Group’s turnover from continuing operations fell to £133.6m in 2009 from £138.9m, which the firm attributed to the “increasingly tough trading environment”.

“The insurance market remains soft and in a continuing cyclical downturn, which, along with a very tough and challenging economic climate, will impact on revenues,” the company said in its Companies House filing.

Despite the loss, Stuart Reid, chief executive of Bluefin Insurance Services, praised the company’s performance amid the challenging operating environment, pointing out that Bluefin Insurance Services, the principal operating subsidiary of Bluefin Insurance Group, made a profit of £10.2m in 2009, almost doubling 2008’s £5.6m profit.

“In the face of the continuing soft insurance market and adverse economic conditions, these results demonstrate Bluefin Insurance Group’s robust performance,” he said. “The operating company made a healthy profit and, despite tough market conditions, we are performing strongly this year.”

In addition to falling turnover, Bluefin Insurance Group’s 2009 profit was hit by a sharp reduction in interest receivable, to £658,702 in 2009 from £4.3m in 2008, due to low interest rates.

The 2008 result was also boosted by £4m of turnover from discontinued operations, which was not present in the 2009 numbers.

The increased loss came despite a lower tax bill of £2.8m compared with £4.4m, lower interest payable and a reduction in administrative expenses to £113.4m from £124.3m.

Bluefin Insurance Group’s shareholders’ funds declined 6% to £208.2m from £221.8m. This was partly driven by a £13.6m fall in intangible assets to £257.6m from £284.8m, the majority of which was caused by amortisation of goodwill. Shareholders’ funds were also reduced by an increase in the pension deficit to £1.1m from £2,000. The deficit relates to the company’s legacy defined-benefit schemes.