Marshmallow, a London-based motor insurance company, achieved substantial revenue growth in 2023.
- The company saw a 75% surge in turnover, reaching £184 million by the end of the year.
- Losses were significantly reduced from £16.1 million to £208k, marking a substantial financial improvement.
- Marshmallow achieved EBITDA positivity for the first time since launching its own insurance service in 2021.
- A focus on corporate governance and compliance remains crucial following a fine from the Gibraltar regulator.
Marshmallow, known for its innovative approach to motor insurance, recorded a remarkable 75% increase in turnover in 2023, resulting in £184 million in revenue for the year ending 31 December 2023. This growth trajectory highlights the firm’s strong market position within the insurance sector.
A key financial highlight for Marshmallow was the dramatic reduction in annual losses, slashing them by 98% from £16.1 million to just £208k. This financial improvement underscores the company’s effective cost management and growing operational efficiency.
In a promising development, Marshmallow achieved EBITDA positivity for the first time since it began operating its insurance carrier in 2021. This milestone indicates the company’s improved financial health and its potential for further profitability in the coming years.
However, the year was not without its challenges. Marshmallow was fined £200k by the Gibraltar finance regulator after raising its gross written premium without obtaining the necessary regulatory consent. In response, the company acknowledged falling short of regulatory standards and committed to enhancing its corporate governance practices through additional training.
Marshmallow also expanded its workforce by about one-third, adding approximately 80 new employees, which brought its total headcount to 310. This expansion is integral to supporting the company’s growth ambitions and maintaining its competitive edge in the market.
The founding duo of Oliver and Alexander Kent-Braham, along with David Goaté, established Marshmallow in 2017 with a vision to revolutionise the insurance industry. By leveraging data, they aim to offer more affordable insurance solutions, especially for those who fall outside the typical ‘good risk’ profile. Their success in these areas has been bolstered by significant investment and backing from well-known investors like Passion Capital and Investec.
Marshmallow is on a trajectory of significant growth and profitability, with continued improvement and expansion anticipated in future years.
