Online insurance broker 123.ie is raking in the cash as it pays out €15m windfall

THE COMPANY BEHIND online insurance broker 123.ie paid out a huge €15 million dividend to its shareholders after profits rose last year.

The firm, which is wholly owned by insurance giant RSA, saw its profits rise from just under €6 million in the 9 months to the end of 2014 to almost €8.6 million in 2015.

Accounts just filed for 123 Money, which trades as 123.ie, show that turnover at the firm rose from about €25 million in the period to the end of 2014 to over €31 million in 2015.

In 2014, 123 moved its financial year from the end of March to the end of December, which is why its 2014 year only accounts for a nine-month period.

After costs distribution and administrative expenses were paid the company made an operating profit of almost €10 million during 2015, up from €7 million in 2014.

Dividend

When taxes were paid it recorded a full year profit of €8.6 million, up from €6 million the year before.

The directors report for 123 Money said that the directors were “satisfied” with the performance of the business during the year, and note that it paid out a €15 million dividend to its shareholders.

No dividend was paid out during 2014. The company’s annual report states that all of its shares are held by RSA. 123, which had reserves of €15.3 million at the start of 2015, now has reserves of just under €9 million, mostly due to its retained profit for the year.

Plenty of deals

British insurer RSA acquired 123, which was Ireland’s first major online insurance broker, in 2010 in a deal worth more than €65 million.

RSA itself looked like it was set to be acquired by Zurich in a £5.6 billion deal last year, however the move was called off when Zurich suffered losses of $275 million following an explosion at the Chinese port of Tianjin.

123′s accounts also show that although the average number of people employed by the firm fell from 280 in 2014 to 246 in 2015, staff costs rose from €8.6 million to €10.4 million.
123.ie did not immediately respond to a request for comment.