Online insurance broker Chill Insurance has reported an impressive rise in profits. The company, which is based in Dublin and is owned by brothers Padraig and Seamus Lynch, revealed that pre-tax profits for the 12 months to April 2018 increased by nearly 40 per cent.
Accounts filed for the company show that pre-tax profits went up by 37 per cent to hit €2.4 million (£2.13 million) during that financial year. Its post-tax profits rose by 12 per cent to reach €1.83, up from €1.6 million the previous year. Meanwhile, revenues of €23.73 were recorded for the period.
Management said it expects similar growth in the current financial year, suggesting the future looks bright for Chill.
Other figures released by Chill revealed that staff costs increased slightly to €9.6 million, up from €8.4 million the previous year.
Chill acquires fellow Dublin broker Aaran Insurances
In other news for Chill, it recently acquired Aaran Insurances, which is also based in the Irish capital. Aaran Insurances is a traditional broker with annual revenues of just over €2 million. It specialises in private motor, household and small business cover. The company was established in 1988 by David Jones, who is now retiring from the business.
Commenting on the Aaran Insurances, Padraig Lynch said that it is “a good business that’s been run well”.
He went on to state that Chill is “in the market to acquire similar businesses that specialise in personal lines insurance”, adding: “We’d be able to give their customers more choice and help with issues such as data protection, regulatory compliance and IT.”
Also responding to the move, Chill Insurance CEO Michael McLaughlin stated that the company is “delighted” to have acquired Aaran Insurances.
The deal was supported with funding from Ulster Bank funding, which worked with Chill to develop a finance package to meet the insurance broker’s needs.
Chill Insurance is now the largest privately owned intermediary in Ireland, with more than 230,000 customers and a staff of nearly 280 – and its latest acquisition will help it to further strengthen its market share. In part, the company’s success has been driven by its intensive promotional efforts, including sponsorship deals with Cork hurling and football teams. In an interview with The Times, Padraig Lynch said that these teams have given the Chill brand “great exposure” that it wouldn’t have received otherwise. He also noted that the business has spent at least €10 million on promoting its brand over the course of the last decade.