Partners& has filed its audited results for the 2022/23 financial year, reporting 54% growth in revenue – a strong performance as it transitions to an established, profitable, and growth-oriented business.
Since launch in April 2020, Partners& has remained focused on its core purpose: to challenge the status quo in the insurance broking sector, returning it to its best traditions based on valued, long-term client relationships and strong risk advice, supported by effective use of technology.
Partners&’s strategy is to provide clients with high quality, seamless insurance, risk management and employee benefits advice, supported by a culture of partnership between its people, clients, and ecosystem partners.
Points of note (1 April 2022 to 31 March 2023)
Industry Recognition:
- Recognition at multiple industry awards, most notably named UK Broker of the Year 2023 and shortlisted for Commercial Broker of the Year at the British Insurance Awards
Key Financials:
- Group Turnover for the year ending 31 March 2023: £34m (2022: £22m)
- EBITDA up £11m on prior year
- Adjusted EBITDA before restructuring costs 2023: £3.8m profit (2022: £4.6m loss)
- GWP 2023: £143m (2022: £110m)
- Client retention improved from 85% in March 2022 to 90% in March 2023
- New business represented 27% of revenue
- Existing renewal book up 13%
Growth:
- Investment in five acquisitions during the year, directly in line with its strategy to extend its geographical footprint and enhance client proposition: MacDonald Group, Albany Insurance Services, Insure Scotland, Richard Thompson Insurance Brokers and Regent Healthcare
- Group headcount expanded from 400 to 430
- Established significant employee share ownership, with almost 30% (120) employees owning shares in Partners&
Values & Culture:
- Launched the Partners& Financial Wellbeing HUB in response to the cost-of-living crisis
- Continued investment in the Partners& Academy, creating a distinctive learning culture to attract, retain and nurture exceptional talent
Phil Barton, Partners& CEO said: “We have made impressive progress in our plan to create the leading advisory business in the sector. We set out to build a business with the technological infrastructure and quality of people to deliver on our ambitious plan – and we are consistently delivering on all fronts.
“We have maintained our commitment to invest aggressively for growth, seizing opportunities when they became available, recruiting top talent, enhancing our proposition, and implementing the technology to operate flexibly and efficiently.”
“Our brand is now incredibly well established and respected in the sector, and we expect to deliver exceptional future profitable growth, from the foundation we have built.”
“Partners& has a vibrant pipeline of ongoing M&A opportunities, with two deals due to complete shortly.”
*Group includes business performance from acquisitions not yet hived up into Partners& Ltd.
About Partners&
Partners& is a Chartered insurance broker providing specialist insurance, employee benefits, risk management and claims advice to businesses and private clients. As a next generation insurance advisory business, Partners& combines the best traditions of broking, such as technical advice and client service, with modern thinking and intelligent use of technology, to enhance the client experience and create a dynamic workplace for its talented team.
In July 2023, Partners& was named Broker of the Year at the 2023 British Insurance Awards.
Partners& has also been shortlisted as “Best Individual Protection Advice Firm” in the 2023 UK Health & Protection Awards which will be announced on 11 October as well as “Commercial Lines Broker of the Year”, “Schemes Broker of the Year” and “Best Training Programme” at the 2023 UK Broker Awards, which will be announced on 12 October 2023 and “Schemes Broker of the Year” at the Insurance Times Awards, which will be announced on 6 December.
Other accolades include the Best Diversity & Inclusion Programme and Best UK Start Up at the 2021 UK Broker Awards and the Diversity and Inclusion category at the 2022 Broker Innovation Awards.
The Group has also been awarded its second gold Investor in Customers (IIC) award demonstrating its continued commitment to delivering exceptional client experience.
For more information, contact Malia Brown at malia.brown@partnersand.com or visit www.partnersand.com
Background information
A blended growth strategy
Partners& has executed a blended growth strategy focused on targeted acquisitions, which extend its geographical footprint or enhance its client proposition, coupled with its innovative Client Partner model, involving the recruitment of high-quality talent, who specialise in specific industry sectors which are forecast to perform well in a post-pandemic UK economy.
Acquisitions
Partners& has executed a blended growth strategy focused on targeted acquisitions, which extend its geographical footprint or enhance its client proposition, coupled with an innovative Client Partner model, involving the recruitment of high-quality talent in specific industry sectors.
During the year, Partners& established national practices in the science & technology and recruitment sectors.
In the year ending 31 March 23, Partners& concluded further M&A including:
MacDonald Group (May 22)
Joined the business to establish a presence across Scotland, bringing their experience in the Scottish market and expertise within Partners&. Entry into Scotland was rapidly followed by the creation of a Client Partner team in Dundee and a second acquisition.
Albany Insurance Services (Jan 23)
Small book of commercial clients acquired to bolster our Scottish business.
Insure Scotland (Jan 23)
Small book of commercial clients acquired to bolster our Scottish business.
Richard Thompson Insurance Brokers (Mar 23)
A specialist in fine art insurance and property broker, joined to enhance Partners&’s advice capability in this niche market. This acquisition also created the first opportunity to build Partners& underwriting capability through their Lloyd’s cover-holder status.
Regent Healthcare (Mar 23)
Adding a specialist in health, wellbeing and employee benefits businesses to our successful wellbeing, health, and protection division.
Organic growth
The Partners& approach to organic growth includes two key facets:
- Executing the Partners& Client Partner model, which involves attracting specialist talent and building a range of practices in attractive vertical sectors. This talent-based growth strategy has proven very successful. To date, Partners& has invested in more than twenty practices, with revenue representing approximately 21% of Group income. Given the longer initial investment period inherent within this growth model, there is an expectation of significant future additional revenues resulting from committed investments over the next two years.
- Rolling out the Partners& client experience programme and client journey initiative, which continue to drive improvements in client advocacy, relationships, and retention. Most recently, Partners& received its second ‘gold status’ award from Investor in Customers (IIC) for the quality of its service and relationships with clients.
Culture
At the heart of Partners& is the concept of partnership. Partners& aims to build lasting mutually beneficial relationships with its clients, its team, and its wider eco-system. Partners& has built a powerful culture, enabling it to challenge market practices relating to belonging, inclusion, wellbeing, and performance in the workplace.
Its culture is based on the following values which provide the framework by which it operates.
P – Progressive – always making improvements and challenging conventional thinking
A – Approachable – providing advice that is clear and easy to understand; being refreshingly positive
C – Collaborative – establishing a true partnership with clients, insurers, ecosystem partners and employees
E – Enablers – making things happen; supporting clients to achieve their business objectives and personal ambitions
Its award-winning BEAT programme, which stands for belonging, energy, an “&” culture, and together, was established to create an inclusive, collaborative, and dynamic workplace. This programme has received industry recognition at the 2022 Broker Innovation Awards, winning the ‘Diversity and Inclusion’ category.
In the 2022 Investor in Customer survey, Partners&’s results improved from 8.03/10 (May 2020) to 8.33/10 (November 2022). Its overall Net Promoter Score moved from +44 (May 2020) to +58 (November 2022).
It also achieved strong employee engagement results: 94.8% of employees understood and connected with its values and its purpose; 90.4% felt engaged and motivated in their work.
In total, 134 colleagues benefitted from the Partners& Academy programme in 2022/23 aimed at enhancing core skills across five faculties: leadership, client service, advisory, technical, and regulatory – each led by a member of the Executive Leadership team.
Partners& actively encourages employees to achieve their CII qualifications. In 2022/23, 14 colleagues completed their CII qualifications and 85 were studying toward qualifications.
In 2022/23, 10.5% colleagues benefitted from internal promotions – 21 women and 24 men across all levels of the business.
Future
Partners& has a strong pipeline of potential acquisitions, focused on specialist brokers focused on delivering exceptional advice to clients.
FY 2024 Financial Performance
Partners& anticipates continued organic and acquisitive growth, with five acquisitions completed in the first six months of FY24.
Partners& continues to benefit from excellent retention, the current rating environment, and our ability to address under-insurance inherent in the market through the application of our unique Partners& Difference advice model. As a result, Partners& remains on track to deliver budget in both revenue and EBITDA objectives in FY24.