Blue Insurance, one of Ireland's biggest online brokers, saw turnover jump by nearly 25 per cent last year on the back of a successful €1 million marketing campaign fronted by TV presenter Kathryn Thomas.
The niche insurer, whose brands include Multitrip. com, gadgetinsurance.com, carhireexcess.com and petinsurance.ie, said it expects revenues to rise further this year as it embarks on a major expansion.
Blue, which also operates subsidiaries in the UK and Australia, said turnover increased from €21 million to €26 million after expanding its line of business last year to include Ireland’s first ever two-year home and motor insurance products. It is now forecasting revenues of €35 million for 2016.
"The company grew in line with expectations in 2015 and we are delighted with the continued growth," said managing director Ciaran Mulligan.
Decline in pre-tax profits
Blue reported a 7 per cent decline in pre-tax profits to €2.4 million from €2.6 million. The company said profit would have been higher but for one-off investments of €500,000 in IT systems, new premises and launch-related costs for its new product offerings.
Gross profits totalled €7.3 million versus €6 million in 2014 with gross profit margin decreasing by 2 per cent over the year.
Net profit before taxation in the group’s Irish business fell from €2.24 million to €2.09 million. Blue’s UK unit meanwhile recorded a 13 per cent rise in turnover to €10.9 million, due primarily to currency fluctuations.
Founded in 2003, Blue Insurance claims more than 300,000 customers across its 14 brands. The company was established by Mr Mulligan and Rowan Devereux. A buyout of Mr Devereux's share in the business for just under €10 million took place in early 2014.
Increase in staff numbers
Blue announced plans in July 2015 to take on an additional 100 employees over a two-year period. Recently filed abridged accounts show however that headcount rose by just 13 last year to 46 at the end of last year. Numbers have since risen to over 65 with Blue saying more appointments are due to be made in the coming months
Staff-related costs, including directors’ salaries, totalled €2 million, up from €1.4 million in 2014.
A final dividend amounting to €2.09 million was paid out during the year, the accounts show.
Mr Mulligan said the group’s UK business was continuing to expand with Blue having recently launched a new pet insurance brand there and a new Travel product due shortly.
He said the company was also currently in negotiations about the launch of Life Cover and Health insurance in Britain the last quarter of 2016 and it was expected to roll out its two-year car and home offering in the Market next year.
