Lifesearch made a pre-tax loss of £296,000 in the 12 months to 31 August, an improvement on the £2.1m loss reported over the same period a year earlier.
Turnover in 2012 reached £16m, up 33.3 per cent on £12m in 2011 and Lifesearch set aside £3.9m for potential clawbacks at 31 August.
Lifesearch says it decided to take a “more cautious view” on commission clawbacks due to the “growth of the business”.
Staff costs, including salaries, social security and pension costs, increased 15.5 per cent from £5.8m in 2011 to £6.7m in 2012.
The firm had 218 employees at 31 August, including 98 sales advisers, up from a total of 191 and 81 advisers a year earlier.
Highclere Financial Services partner Alan Lakey says: “Lifesearch’s cautious approach to clawback could be because it had a higher lapse rate than normal due to the gender directive and the activity it did in the run up to that. People were rebroking a lot of policies.”