It is our financial performance that enables Towergate to sustain its virtuous cycle of growth and strength in depth. In 2006 we not only built up an impressive war chest, which gives us the ability to compete for the best acquisitions, but we have also taken the opportunity to attract external investors in order to release some funds to the shareholders and staff who have been instrumental in creating our success.

 

Financial strength

 

Our sales totalled £1.1bn of gross written premium (GWP) in 2006 and, on an annualised basis, we now manage premiums of £1.5bn across the Towergate family of companies. More significantly, our earnings grew 50.6% from £62.7m in 2005, to £94.4m. This is derived from net income of £242.8m, an increase of 39.5% on 2005. I am especially delighted that our return on revenue has increased to 38.8% from 36% in 2005.

More significantly, our earnings grew 50.6% from £62.7m in 2005, to £94.4m. This is derived from net income of £242.8m, an increase of 39.5% on 2005.

 

We take great pride in reporting returns and margins of this quality against a backdrop of continued downwards pressure on rates in many lines and an industry in which very few of the largest broking firms achieve comparable margins. Profitability is the difference between thriving and surviving, and it provides security and opportunities for our people.