I am pleased to announce a strong set of results for Xenia Broking Group Limited for the year ended 31 December 2021.
Further information in the CEO's statement, including the table below and commentary relates to the combined financial information and performance of Xenia Broking Group Limited.
The results can be summarised as follows:
2021 Run Rate**
Gross Written Premium (GWP)
The above table includes GWP, Income and Earnings before interest, tax, depreciation and amortisation (EBITDA) from Xenia Broking Group Limited, its three 100% owned subsidiaries and Xenia Broking Group's European revenue that is accounted for in a separate Kentro Capital Limited group Company.
** The 2021 Run Rate includes the full year performance of the four acquisitions made during 2021 (but does not include acquisitions made in 2022) in addition to adjustments for non-reoccurring costs.
Xenia Broking Group (Xenia) enjoyed a successful and formative year through 2021, further solidifying our position as the leading specialist trade credit and surety broker in the UK and laying further foundations to become a leading specialist financial risk and financial lines broker internationally. At the time of writing we are 80 staff operating out of 7 offices in the UK and one in Hong Kong. We are investing in our infrastructure and, importantly, our distribution capabilities in order drive growth in the trade credit market, our predominant product line currently.
We delivered excellent financial results in 2021 despite the highly challenging trading conditions caused by the Covid pandemic, growing our GWP and income by 18.1% and 17.5% respectively. It was an exceptional performance given the prevailing economic backdrop, underscoring the resilience of our business model.
Concurrently, we had a successful year of M&A activity concluding four acquisitions:
- In April, we acquired the trade credit business of Status Credit Insurance Brokers Limited. This was followed in May with the acquisition of the trade credit business of Credit Insurance Alliance (Brokers) Limited. Both transactions involved the acquisition of highly complementary portfolios of clients, strengthening Xenia's regional footprint and trade credit market share.
- In November, we acquired the whole turnover trade credit and the financial and specialty risks teams from specialist Lloyd's broker Parker Norfolk & Partners Ltd. The acquisition marked Xenia's launch into the financial and speciality risks market, which is a class of business that was our priority diversification.
- We closed November with the acquisition of Peter Hill Credit & Financial Risks Ltd, a trade credit and surety broker based in Northampton. Peter Hill's reputation, client service ethos and sector specialisms are in unison with Xenia's, and the highly experienced Peter Hill team have been a welcome addition to the Xenia Group.
Subsequent to the 2021 financial year end, we have completed two further acquisitions. In January 2022 we concluded the acquisition of the UK whole turnover trade credit and surety portfolio of Tysers Insurance Brokers. In April 2022, we acquired a majority stake in Capstone Insurance Brokers Limited, a Hong Kong based insurance broker with specialist expertise in Financial Lines and digital asset insurance. This acquisition is a transformational deal and marks the start of Xenia's international expansion and broadens the broking group's product offering into new and emerging classes of business.
In the 17 months preceding May 2022, Xenia has fortified and grown it's UK regional business, diversified it's product offering, expanded internationally and has a strategic pipeline full of new opportunities which will accelerate our strategy to become the leading specialist broker for credit, financial risks and financial lines insurance internationally.
Xenia Broking Group Limited