2019 Statutory Accounts Report
Business Review and Future Developments2019 was a good year for the Group with growth in the Broking customer base and the launch of Kitsune its MGA. Insurance broking activities continued to be core to the strategy of the group and delivered strong growth in policy count and revenue.
Total revenue for the year was £35.7m which is marginally down on 2018 revenues of £36.1m, largely as a result of the decision to not accept new instructions for the medical reporting business. Excluding the medical reporting business, revenues were £32.4m up 16% from 2018 of£27.9m Revenue comprises £24.Sm from insurance broking activities (2018: £21.Sm), £3.3m from medical reporting (2019: £8.2m), and £0.8m of other ancillary revenues (2018: £0.7m).
Performance Review and Key Performance IndicatorsThe performance of the Group is considered by reference to each of the principal activities of each trading entity as described below. The Directors use the key measure of operating profit before charges for depreciation, amortisation, impairment and reorganisation expenses ("Adjusted EBITDA") to assess the underlying financial performance of the Group as, in the opinion of the Directors, this measure best reflects the underlying profitability and cash generation of the Group. The Adjusted EBITDA for 2019 was £5.0m (2018: £5.6m) reflecting the underlying profitability of the activities of the Group.
Insurance brokingBrightside Insurance Services Limited ("BISL") is a wholly owned subsidiary and regulated entity that undertakes the insurance broking activity for the Group.
The Company saw growth in 2019, with income of £31.6m (2018: £27.9m) up 13%. Gross written premium ("GWP") was £125m in 2019 (2018: £ I06m). This has largely been derived from improvements to the panel for private car insurance, under the Brightside Car brand.
Medical reportingInjury QED ceased new business instructions during 2019. The Company has continued to complete previous instructions and will now seek to maximise cash collections from its contract assets held at 31 December 2019.
KitsuneDuring 2019, the Groups MGA began trading. Private Car and Light Commercial Vehicle products were launched, and the Company has live trading relationships with 18 brokers, including Brightside Insurance Services Limited.
The Company achieved income of £1.2m in its first year and gross written premiums were £12m.