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Press Release

BGL Group Reports 43 Per Cent Profit Growth

11th year of record profits in personal lines

Immediate release: 31 October 2008

The BGL Group today announced a 43 per cent increase in profit to £43m for the financial year July 2007 to June 2008. Despite challenging market conditions, the Group also enjoyed 20 per cent growth in both GWP and policies under management.

Summer 2008 Growth 07 to 08
Profit before Tax £43.0 million 43%1
Gross Written Premium £598 million 20%
Policies under management 2.3 million 21%

Peter Winslow, Chief Executive of the BGL Group, said: "I'm proud to say that we rose to meet the challenging market conditions of the last financial year. In the climate of the 'credit crunch' and reduced consumer spending, such growth is a significant achievement. The major drivers behind our success this year were again Junction, our affinity business, Bennetts bike insurance, the Group's newest in-house brand, ibuyeco, and our claims management arm, ACM ULR.

"We have also spent time this year ensuring that we are growing sustainably. The previous financial year saw employee numbers grow rapidly from 1,500 people to 2,200. This year our focus was on integrating our new people and listening to their feedback, as well as ensuring we had the right infrastructure and support in place to deliver ongoing success. A key part of this is an ongoing emphasis on the development of our people. We have always placed great importance on recognising and enhancing the talents of the people within the business. We are now in an excellent position, able to be both flexible and innovative, and as a result our growth is sustainable for the long term."

Highlights of the 2007/08 financial year for the BGL Group include:

  • Further growth for affinity specialist Junction, which delivered sales growth of 44 per cent across its partners. In addition to long-term contracts with M&S Money and the Post Office, the team secured a Joint Business Framework with Auto Trader and launched a new lead hand-off scheme for More Th>n.
  • Significant growth of ibuyeco, the carbon neutral motor insurance brand. Through marketing initiatives and price comparison site activities, the brand grew its customer base to 60,000 in 12 months.
  • 56 per cent profit increases for Bennetts – a strong outcome in a mature market.
  • ACM began offering claims management services for external companies, and launched its Vehicle Repair Service to ensure consistently high quality and timely repairs.
  • Exceptional cost management and effectiveness within the Group’s contact centres, branded Fusion.

The Group was also commended by the National Business Awards as a leading UK company, and was selected to be the subject of a film about the business.

1 Based on 2006/07 profit figure of £30 million (excluding sale of Budget Retail division)