Towergate sees earnings rocket in first half

Towergate Partnership reported a 36% increase in profitability for the first half of the year.

Earnings before interest tax depreciation and amoritisation (EBITDA) increased to £67m from £49m in the same period in 2006.

Sales increased 30% to £709.0m of gross written premium (GWP) including Paymentshield, while income increased by 32.4% to £161.0m.

Executive chairman Peter Cullum said: “We are not solely reliant on acquisitions for growth and we have placed great emphasis on business development, client retention, and organic growth which has been achieved across our Underwriting and Retail Divisions. The impact of our new business has been somewhat offset by the continued soft market rates, but our margins demonstrate that we have a highly profitable and sustainable model.

“These increases [in income and earnings] relative to the increase in GWP, highlight the positive impact of our 2006 acquisitions as they continue to settle in and realise the benefits derived from our efficiencies of scale and our overall business model. We continue to maintain tight control of operating expenses.”