UK IFA support group Tenet has recently reported a nearly £1.6 million loss in 2010 due to sluggish performance of one of its investment ventures and increases to the number of professional indemnity insurance claims made last year.
Tenet Group reported a £1.59 million loss against £79 million in revenues for the past 12 months, mostly driven by increased professional liability insurance claims. The 2009 year saw the firm in the black with £380,000 in profits after £76.3 million in revenues.
Tenant Group investment Sinfonia recorded £1.3 million in operating losses. This figure represents a slight improvement over the £1.38 million in losses from 2009.
Pre-tax profits for Tenant Group’s subsidiary business insurance arm Paragon stood at £380,000 in 2010, which exceeded its 2009 figures by £80,000. However Paragon saw £600,000 in costs added due to the volatile nature of the stock market regarding the value of claims settled and reserved.
Tenet group chief executive, Simon Hudson, stated that the economic landscape was particularly challenging to some of Tenet’s business divisions. The challenges were quite diverse, said Mr Hudson, drawing particular attention to how the average value of professional indemnity insurance claims were elevated by volatility in the stock market.
The chief executive additionally stated that Sinfonia has yet to attract sufficient funds to break even despite the amount of momentum it has gained over the past two years. Mr Hudson attributed the phenomenon to retail investors favouring asset managers that have been established longer.
Despite its recent difficulties, Tenet Group persists in its belief that it is healthy and well-placed in the business marketplace. Mr Hudson highlighted the £33 million in net assets the company possesses, which include £27.8 million of cash at bank.