The UK life insurance brokerage Reassured has “raised eyebrows” by altering its financial accounts for the second year in a row.
As revealed by Z News Service, what was initially reported as an operating profit of £5,531,608 for 2022 has now been restated as a loss of £5,906,266.
This “significant” adjustment is due to a much larger volume of policy cancellations than the company had predicted, an echo of last year’s financial reshuffle that led to a similar economic revision.
This is the second consecutive year that Reassured has had to modify its financial forecasts due to an unexpected surge in cancellations.
Z News Service said the repeated need for such adjustments “invites questions” regarding the company’s forecasting methodologies and financial risk management strategies.
In response, a spokesperson for Reassured stated: "The restatement we made to our 2021/22 accounts relates to trading during the unprecedented Covid 19 era and reflects the increased number of cancellations in 2020 and 2021.
"Reassured subsequently reported a return to profit of £4.7mn in the more recent 2022/23 accounts and enjoyed continued growth in 2023/24."
Z News Service said adding to the complexity of the situation is the recent transition in leadership.
Reassured founder and CEO, Steve Marshall, stepped down from his role and was succeeded by Mark Townsend.
“The insurance industry, a sector known for its dynamic nature, can be fraught with unexpected challenges,” Z News Service stated.
“The case of Reassured serves as a stark reminder of this reality. The recurring nature of these financial reversals and the shift in leadership could signify that Reassured is entering a new chapter in its corporate narrative."
tom.dunstan@ft.com
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