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Sesame’s network makes £2.5m loss and pays out £11.4m in claims

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George Hgginson: We are investing millions

Sesame made a loss of £2.5m in 2011, paid out £11.4m in claims and set aside a £7.4m provision for future complaints.

The network’s loss follows a profit of £1.1m in 2010. Sesame attributes the loss to investment in new services for members ahead of the RDR.

The £7.4m complaints provision is 12 per cent down from the £8.4m the network set aside in 2010.

The firm received just over 3,000 complaints during 2011. It upheld 517, or 17 per cent, of the total. Sesame says this reflects the number of erroneous cases generated by claim management companies. The number of outstanding complaints at 31 December was 287.

The network’s turnover increased 5 per cent from £162.9m in 2010 to £170.3m in 2011.

The number of investment advisers fell 12 per cent from 1,379 to 1,202. The number of mortgage and general insurance advisers rose 3 per cent from 995 to 1,020.

The results form part of the overall Sesame Bankhall Group accounts, revealed earlier this year, which show the group made a trading profit of £2.2m in 2011, down 56 per cent compared to £5m in 2010.

Sesame Bankhall Group chief executive George Higginson says: “As part of our long-term strategy and commitment, we have been investing millions of pounds to ensure firms are in a strong position post-RDR.”

Access Wealth Management partner Jim Clancy says: “You only have to look at what happened at Honister to see how much strain networks are under. I do worry for the future of the network model.”


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