Perth-based Clark Thomson insurance brokers continued to consolidate its position as Scotland’s largest general insurance broker in the year after its seven figure takeover of the Willis Group’s Scottish commercial business.
Turnover was up 3.34% (£321,752) at £9.95 million for the year to March 2016 but administrative expenses were 16.3% (£1,822,807) lower at £9.34m.
As a result the previous year’s loss of £1,477,959 became a pre-tax profit of £658,692.
Clark Thomson’s purchase of Willis was announced at the end of January 2015.
Director Benjamin Bailey said given the timing of the acquisition, turnover and operating profits for the year were in line with expectation.
He said 2016 was also the first year Clark Thomson had presented its results under the new Financial Reporting Standard FRS 102, and the comparative figures for 2015 had been restated.
“The insurance broking industry continues to be a very tough market with competition remaining extremely strong,” he continued.
“Investment continues to focus on our people, IT capabilities and premises to ensure we continue to put client service at the core of our proposition.”
The success of the approach was evident in the firm’s industry-leading level of client satisfaction and loyalty.
Continuing growth in market share through organic growth was also achieved by the winner of the Best UK Commercial Broker at the UK Broker Awards.
Mr Bailey said the principal risks from its business arise from the potential adverse impact of a detrimental change to the competitive and/or economic environment; operating in a regulated environment and the possible loss of key personnel.
Premium pricing in the UK insurance market remained soft with an adverse impact on turnover growth, but Clark Thomson managed the issue by supplying a wide range of insurance products across a variety of different markets.
Changes in market conditions were managed by continuing to focus on SME businesses ensuring no single concentration of clients or industry sector.
Costs were closely monitored to ensure the business responds effectively to changes in the environment.
Mr Bailey said the company, with nine branches throughout Scotland, also invests significant time and resource in regulatory compliance.
Incentive schemes are in place to help attract, retain and motivate key personnel.