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Press Release

BGL Group unveils record results

Unprecedented profits as the Group reaches 2 million policies and 10 years as a broker

Immediate release: 31 October 2007

Summer 2007 Growth 06 to 07 Growth 05 to 06
Profit before Tax £43.0 million 93% 85%
Gross Written Premium £502 million 34% 25%
Policies under management 1.9 million 36% 34%
Number of employees at year-end 2250 50% 85%

The BGL Group (formerly the Budget Group of Companies) today announced another set of record profits and substantial growth for its financial year July 2006 to June 2007.

The Group delivered a pre-tax profit of £43 million, up 93 per cent on the previous year, which had also been a record performance. Furthermore, since the end of the financial year, the Group has reached a total of two million policies under management. At year-end, the number of policies had grown by 36 per cent from summer 2006

Peter Winslow, Chief Executive of the BGL Group, said: "We've enjoyed another spectacular year, and have ambitious plans for the next 12 months. The dedication and support of the excellent people within the business, and an entrepreneurial culture that means we can react quickly to changes in the market, have contributed to our success. As one of the leading UK insurance intermediaries, we are flexible and innovative, ready to launch new products and take advantage of new trends. As a result, our growth is sustainable for the long-term. This is a landmark result in the year in which we celebrate the 10th anniversary since changing our strategy from being an insurance underwriter to a broker."

This is the latest in a line of accolades for the Group over recent months.

Its rapid growth meant that the BGL Group leapt from 12th to 8th position in the 2007 Top 50 Insurance Brokers list. Published by Insurance Times, the list is an important measure within the insurance sector. It is compiled based on companies' brokerage figures - for both commercial and personal lines. The BGL Group had been in 12th position in both the 2006 and 2005 lists.

In addition, the Group was named one of the largest mid-market companies in Britain in the Sunday Times HSBC Top Track 250 league table, published earlier this month. The annual table, now in its third year, ranks Britain's mid-market private companies by sales, and included the Group at number 229.

The Group was also recognised as one of 10 'ones to watch' in The Sunday Times PricewaterhouseCoopers Profit Track 100 report. This annual league table highlights 100 private UK companies with the fastest growing profits sustained over a three-year period. While the Group was just outside the 100 this year, it is confident that it will be featured in 2008. Already a major player within insurance, this recognition against private companies across all UK industry sectors is a significant accolade for the BGL Group.

The BGL Group's successes this year and its rapid growth are the result of the hard work and new innovations from each of its business units, whose highlights are as follows:

Junction - provider of insurance services for affinity partners. Achieved 1,000,000 policies under management in August 2007, and secured long term contracts with Post Office®, M&S Money and Auto Trader.

comparethemarket.com - the price comparison website. Has secured partnerships with Simply Switch, MoneySaving Expert, Motley Fool and has launched a high profile TV sponsorship campaign with Channel Four Drama as part of a £60 million marketing campaign.

Bennetts - the motorcycle insurance specialist. Achieved a 21 per cent market share and reached 200,000 policies.

BUDGET insurance - its file-size exceeded 700,000 customers. This was achieved via a renewed focus on marketing to attract new customers, and dedicated targeting of renewals.

ibuyeco - the carbon neutral car insurance brand. Launched in April 2007, and began rolling out its national television advertising campaign in July. ibuyeco was the first insurance product to offer 100 per cent offsetting of drivers' annual carbon emissions.

Peter Winslow said: "In many areas we have actually exceeded the goals we set ourselves. As a result we've upgraded our targets for the next financial year and feel confident that it will be another strong performance with additional growth. The Group is expanding at a rapid rate - we will continue to take on more people and thanks to our ongoing development it's a company that can offer exceptional career opportunities. Of the new senior management positions, 48 per cent were awarded to people already within the business. We're confident that our outstanding people will help deliver another record performance next year."

A significant proportion of profits will be reinvested in the business, as in previous years, to upgrade company premises, IT systems and fund other projects to maintain the Group's high staff morale and productivity.

In July the BGL Group changed its name from The Budget Group of Companies. The change was made in view of the increased breadth and diversity of the company.