BNH Broker Network

RNS Number:0797Y
Broker Network Holdings plc
11 June 2007



11 June 2007
                          Broker Network Holdings plc

                                 Trading Update


Broker Network Holdings plc ("Broker Network" or "the Group") is pleased to
provide a trading update for the year ended 30 April 2007.

Broker Network is a national insurance distribution business incorporating a
network for independent insurance brokers, a retail insurance broker for the
provision of insurance advice to businesses and private individuals across the
UK, and a Lloyd's and London market wholesale insurance broker.


Preliminary Results and Trading

Preliminary Results, which will be announced on Thursday 13 September 2007, are
expected to exceed current market expectations. Trading across the Group has
been strong, despite soft insurance market conditions.


Broker Network

We have doubled the size of our sales team, recruiting both internally and
externally, giving us the necessary capacity to reach our increased target of
500 network Members within 6 to 7 years.

To accommodate this expected growth, we also have in place an internal team
capable of processing the addition of up to 60 new Members per annum - once
again double the previous capability.

There is good reason for this increase in capacity. We believe our target
audience is more receptive than ever before to the concept of the network model.
This is due to the ongoing consolidation which dominates the insurance broking
sector and brokers' growing acceptance of the need to be a part of a larger
organisation in an increasingly tough and competitive trading environment. In
May 2007, we also launched a Membership package for start-ups, allowing us to
recruit newly-created brokers being formed as a result of the fall-out from the
consolidation that has already taken place.

We have also begun to secure our relationships and distribution with most of our
key insurer partners, including Allianz, AXA, NIG, Norwich Union, Royal & Sun
Alliance and Zurich. We continue to work extremely hard on behalf of our
partners and our commitment to long term relationships with them means that we
have secured this activity and the associated revenue streams for the
foreseeable future.


Retail Division

Our retail division, comprising Broker Network Insurance Brokers and TL Risk
Solutions, is performing well, despite challenging trading conditions. This
performance has been supported by improved commission earnings negotiated by the
network, helping to improve margins overall despite pressure on top line
premiums.


The Insurance Market

The market remains soft and with interest rates rising, equity markets buoyant
and benign weather conditions prevailing, a harder market seems unlikely in the
near future.


Consolidation

The rate of consolidation across the market has dramatically increased as a lack
of organic growth added to a sense of opportunity has resulted in principals
seeking to realise value from their businesses. This means the Group has faced
more competition for acquisitions, as new entrants into the market are prepared
to offer vendors increasingly  high multiples. The Board continues to be
confident in the Group's acquisition proposition and the pipeline remains
healthy. However, acquisitions are now fiercely fought and negotiations are
taking considerably longer than in the past.

The industry has also seen insurers purchasing mainstream commercial insurance
brokers for the first time, with both AXA and Groupama acquiring commercial
brokers in the last six months. Although this is unlikely to have a direct
impact on our acquisition model, it will undoubtedly raise price expectations
across the board.


Results Meetings

There will be opportunities for press and analysts to meet with Grant Ellis,
Chief Executive and Julie Hale, Finance Director, on Thursday 13 September and
Friday 14 September in London. Please register your interest with Kelly-Ann
Knight, Head of PR & Communications at k.knight@brokernetwork.co.uk.


                                     -ENDS-


For further information, please contact:

Broker Network Holdings plc
Grant Ellis
Chief Executive                                              01423 877812

Julie Hale
Finance Director                                             01423 877826

Kelly-Ann Knight
Head of PR & Communications                                  01423 554147

www.brokernetworkgroup.co.uk

Cenkos Securities
Andy Roberts (Sales)                                        020 7397 1934
Ian Soanes (Corporate)                                      020 7397 8921


Notes to Editors

Key Facts:

  * Broker Network Holdings plc listed on AIM in May 2004 at a price of 71p
    per share.
  * Today the company is capitalised at #49m
  * Since listing on AIM, the Group has made 19 acquisitions
  * The Group employs over 350 people, with headquarters in Harrogate, North
    Yorkshire
  * There are currently 168 Members of the network business
  * The total annual premium income of the Group exceeds #450m

Broker Network Holdings plc, trading as Broker Network Group, is the parent
company of 4 trading companies:-


Broker Network Limited

Broker Network is the trading name of The Broker Network Limited. It is the UK's
largest network of independent commercial insurance brokers. Broker Network
negotiates centrally with insurers or wholesale intermediaries using the full
combined weight of the Members and Members can place business via these
facilities. In addition, Broker Network provides Members with an extensive range
of business support services including marketing, compliance, IT, training and
human resource management.


Broker Network Insurance Brokers

BNIB is the retail arm of community insurance brokers, acquired from both within
and without Membership. It was established in 2004 to support Broker Network's
proposition for Members contemplating retirement. Members who have sold their
businesses to Broker Network benefit from a flexible deal structure, retaining
their company name, existing employees and often premises.


TL Risk Solutions

TL Risk Solutions, in which Broker Network Group owns a majority stake, is a
leading provider of risk management, healthcare and insurance advice to
businesses and private individuals across the UK. The business currently has
some 4,000 corporate clients and over 18,000 private clients and its principal
focus is on mid-sized corporate businesses in the UK and mid to high net worth
private individuals. The company places over #50 million GWP into the general
insurance and healthcare markets. Originally established as the insurance
broking arm of the Towry Law Group in 1965, it was sold to the Broker Network
Group on 01 July 2006, with the senior management team retaining a 25% stake in
the business.


Broker Network London Markets

BNLM is the trading name of London Broking Services. It was established to
provide Members with access to Lloyd's and London markets for insuring clients
involved in specialist or high-risk activities. Through BNLM, Broker Network was
the first network to receive full accreditation as a Lloyd's broker.






                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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