A steady 3% growth in overall revenues to £38.7m in 2013 from a level of £37.6m a year earlier is reported today by Tyser & Co (Tysers), the independent international insurance and reinsurance broker. Pre-tax profit fell slightly to £6.8m from £7m in 2012 due to expenses incurred in investment and recruitment.

Other key features published in the company’s annual report and accounts include:

  • EBITDA profit margin 18% (19% – 2012)
  • Net assets of £10.9m (£11.8m – 2012)
  • Debt free balance sheet
  • £2.1m of free cash (2012: £1.2m)
  • £30.4m (2012: £26.2m) of fiduciary cash held in Non-statutory Trust Accounts
  • Inter-company dividends of £5.75m paid to parent company, Hawkes Bay Holdings

Tysers’ Chairman, Christopher Spratt said, “We are pleased with our performance in this challenging and evolving market. We have made significant investment in systems and recruitment this year and we look forward to seeing the benefits of this during 2014 and beyond.”

Mr Spratt noted the challenges to the industry including the unprecedented natural catastrophe claims of the last three years resulting in costs to the (Re)insurance industry of $30bn in 2011, $80bn in 2012 and $45bn in 2013, the intense competition for business particularly with alternative reinsurance capital encroaching on traditional reinsurers, and the increasing erosion of the traditional market’s business with big brokers due to big data and facilities taking bites out of an already competitive global specialty portfolio.

Despite these challenges he believes the industry as a whole can take credit in its overall performance and there are still strong opportunities out there which can be developed by the energetic and agile players. In 2013 natural catastrophes caused US $32bn of economic losses which converted into US $19bn of insured losses, whereas in Asia the comparative figures were, respectively, US $62bn and US $6bn.

Mr Spratt commented,

“In this evolving market it is the mid-market brokers such as Tysers who are well positioned to develop these opportunities to bring good business to the market from their distinctive sources.”

Chris Elliott, Tysers’ CEO, said:

“We are pleased with our financial position in this challenging market and believe that we are well-positioned to take advantage of opportunities that arise whilst our investments made in 2013 come into fruition.”