Kwik-Fit relies on non-motor for growth
by David Masters
Story link: Kwik-Fit relies on non-motor for growth
Kwik-Fit Insurance posted a 5% fall in pre-tax profit in this week despite a 10% rise in turnover.
The results, for the full 2008 year, show a pre-tax profit of £8.8 million on revenues of £64.2 million.
When a 2007 accounting anomaly is removed, however, the results show underlying profit up 7% and operating profit up 11.6% to £12.2 million.
Motor insurance sold by the firm dropped in 2008. However, this was offset by 29% rise in non-motor policy sales.
Brendan Devine, managing director, said: “We’ve had a very good year in an increasingly-competitive market.
“The motor book declined by 3% in the year. This was obviously disappointing but, the board believes that this was an acceptable result given the highly competitive nature of pricing in the market.
“The proportion of revenue derived from other non-motor insurance policies grew by 29% during 2008 and the company once again continued to improve on its record of additional product sales.
“We have also made a great start to 2009 with month-on-month growth of sales since December 2008, including a record sales day in July.”
Kwik-Fit’s insurance arm, founded in 1995, belongs to private equity group PAI Partners.