Towergate Insurance lost £18.7 million in the first nine months of the year as it continues to experience “headwinds” in its financial restructure.

The company’s earnings before interest, taxes and other charges declined by 129.4% compared to the same period last year.

Its income fell by 10.3% to £87 million in the three months to September, while its expenses continued to grow to £74 million, up 4.3%.

The Maidstone-based broker is undergoing a drastic turnaround after being put up for sale in November last year as it wrestled with debts of about £1 billion.

It announced a restructure in February, after it was bought by a group of its bondholders, which reduced its debt from more than 10 times its earnings to nearer 4.6 times.

"Towergate has proven to be incredibly resilient, with a significant number of clients retained and signs now that the business is stabilising, giving us a strong base to build on..." - David Ross, Towergate

New chief executive David Ross, who has been in the post a month, said it is clear the company’s problems are “going to take some time to fix” but said the firm was heading in the right direction.

Mr Ross joined the company from rival insurer Arthur J Gallagher, which reached a £20 million out of court settlement with Towergate over its decision to poach their former chief executive earlier this year.

He said: “Our financial performance has been impacted by a well documented period of instability.

“However, Towergate has proven to be incredibly resilient, with a significant number of clients retained and signs now that the business is stabilising, giving us a strong base to build on.

“Our new executive team is now in place and with the uncertainty and distraction of senior vacancies and interim management behind us, we can focus on accelerating investment, growing the business, strengthening the infrastructure and managing cost.

“Less than one month into my role it is obvious to me that the foundations are in place to build a better business.

“In meeting many of my new colleagues over the past three weeks, I have been struck by the huge passion they have for this business, explaining why so many have stayed with us on this difficult journey.

“This is what we want to build on, to support our brokers and underwriters on the front line, so that they can compete confidently and profitably, whilst making Towergate a great place to work.”

Towergate also has offices in Sevenoaks and Whitstable and employs about 4,400 people nationally.