IFG Group, the Dublin-based financial services company, has sold its Irish insurance business in order to concentrate on the UK wealth management sector.
The company announced a 12 per cent increase in operating profit to £4.4 million (€6.02m) for the first six months of this year compared to £4 million last year.
IFG owns James Hay Partnership and Saunderson House, two wealth management firms in the UK. After a review of group operations, it sold its Irish insurance business on July 24, and the deal is expected to complete by the end of 2015, subject to regulatory approval.
“Our sharp strategic focus on the retirement wealth market is delivering growth and improved performance. James Hay and Saunderson House have distinctive propositions, which we continue to invest in to enhance client service and sustain profitable growth. Our financial strength is further enhanced by the completion of the group restructuring, which started in 2014,” said Paul McNamara, the group’s chief executive.
“With positive momentum in our businesses, and a strong balance sheet, we are well positioned for the future,” he added.
Advertisement
Group-wide revenue increased 10 per cent to £34.5 million for the six-month period compared with 2014. Total assets under administration grew by 11 per cent to £21.5 billion over the same timeframe.
“James Hay has delivered strong growth in the first half with revenue and assets under administration rising by 13 per cent and 10 per cent respectively, driving operating profit growth of 26 per cent,” said Emer Lang, an analyst with Davy, the stockbroker.
“While higher regulatory costs at Saunderson House weighed in the first half of the year . . . IFG remains well placed to deliver meaningful growth in profits in the second half of 2015 and beyond,” she added.
IFG shares have risen from €1.57 at the start of the year to close at €1.96 yesterday on the Irish Stock Exchange.