TOWERGATE LOSSES MOUNT IN FIRST QUARTER

UK-based intermediary and managing general agent (MGA) business Towergate saw its pre-tax losses rise in the first quarter of 2014 as revenues fell and expenses increased. The company posted a pre-tax loss in the first quarter of 2014 of £26.6m, a deterioration on the £18.9m reported in the same quarter of 2013. Towergate generated a loss on ordinary activities of £1.9m in the quarter compared with a £5.1m profit in 2013. The group’s direct and broking operations reported lower earnings while its underwriting business maintained stable profits. The biggest fall in earnings and turnover was experienced by the group’s mortgage insurance unit PaymentShield, which saw earnings fall to £9m from £12.7m and turnover slump from £12.9m from £16.6m in the first quarter. Overall, turnover fell in the first quarter of 2014 to £101.5m from £106.1m in the first quarter of 2013. The company reported higher expenses at £81.5m in the first quarter of 2014, up from the £78.2m in the same period of 2013.