View more on these topics

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

George Higginson new
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.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com