Principal Insurance has reported a 16.5% rise in post-tax profits for its financial year 2024-25, which ended October 31, 2025, with earnings reaching £812,113.
Turnover rose to just under £7 million, while EBITDA increased by 15% to £710,000. Managing director Dave Bowcock (pictured) said the results were "more than satisfactory, driven by growth across our portfolio, but with our motorhome and fleet segments performing particularly strongly."
The figures do not capture earnings from Principal's acquisition of Peart Performance Marque Limited's renewal book, completed on the final day of the financial year, nor from its more recent purchase of Europa group, the Bristol-based broker behind the MotorCycle Direct brand.
Financed solely through shareholder funds, the Europa acquisition expanded Principal's reach to more than 125,000 policyholders and over £60 million in annual gross written premium. Principal expects to achieve similar standing in the motorhome and courier insurance markets by the 2026-27 financial year.
"However, recent acquisitions, most notably that of Europa Group, are set to drive much more significant growth as we further increase our share of the motorcycle insurance market and benefit from the synergies of integration," Bowcock said.
Principal's expansion comes as underwriting capacity in UK motorcycle insurance has tightened. AXA exited the motorcycle insurance market in March 2024, part of a broader retreat by mainstream insurers from the sector.
Bowcock has previously said that "bikers have increasingly aired their frustrations that competition has been stifled, with fewer providers and a loss of market appetite resulting in the reduced availability of cover across both bike and rider profiles." That backdrop helps explain why Principal recently struck a separate capacity partnership with Wakam UK, bringing fresh underwriting into the motorcycle segment alongside its acquisition-led strategy.
Principal's results land against a difficult period for UK motor insurance more broadly.
The average price paid for motor cover fell for three consecutive quarters through 2025, reaching £551 in the third quarter, according to industry data cited by analytics firm Consumer Intelligence, as insurers competed hard on price even as claims costs stayed elevated. The wider UK motor insurance sector still generated £16.6 billion in gross written premiums in 2025, though average claim values have risen by nearly a quarter since 2020 as repair costs climb alongside more advanced vehicle technology. Forecasters including EY have warned the sector faces a difficult 2026, with rate rises unlikely to keep pace with claims inflation.
For a specialist broker such as Principal, that squeeze on standard motor underwriting margins underscores the logic of leaning into niche, less price-driven segments such as motorcycle, motorhome and courier cover, where differentiation rests on expertise rather than price alone.
Bowcock has signalled that further consolidation is likely.
"We're acquisition hungry and have the funds to fuel that appetite. If you're looking to exit markets in which we're active, talk to us," he said following the Europa deal, adding that the company is actively pursuing both specialist brokers and renewal books across its core personal and commercial lines.
That approach reflects a broader pattern in UK insurance distribution, where the sector's £21.7 billion broking and agency market has continued to consolidate around scaled, specialist platforms able to absorb smaller niche players seeking an exit.
