Bosses at insurance giant Towergate are hailing a “milestone” in its turnaround after it enjoyed its first quarterly growth in underlying profitability since the business was sold last year.

The broker and underwriter, which is headquartered in Maidstone, increased adjusted earnings before interest, taxes and other charges (EBITDA) by 5.9% to £19.4 million in the third quarter.

However, the same benchmark for the first nine months of the year was down 10.6% compared to 2015 at £59.7 million.

The company, which also has offices in Sevenoaks and Faversham, the latter under the Capital and County brand, was taken over by bondholders last year, who restructured its £1 billion debts following a loss of more than £720 million in 2014.

Income for the nine months to the end of September was down 6.3% to £245.7 million, although it reduced staff costs by £10.7 million (7.6%) over the same period to £131 million.

Towergate chief executive David Ross said: “Towergate has reached a milestone in its recovery, with our first quarter of positive year on year growth in adjusted EBITDA since our financial restructuring.

“This performance has been driven by a continued improvement in underlying profitability driven by strong cost control and stabilising income.”

The company, which employs about 280 people in Kent and 4,225 nationally, said cost saving initiatives have steadily increased to a total of £39 million, including a further £3 million identified in the third quarter.

In September it was revealed US private equity firm Madison Dearborn Partners – which has raised seven funds worth about $23 billion and completed about 130 investments – had become the second largest shareholder in the company.

Earlier this month Towergate secured a £26 million loan with the bank over five years, which will largely be used to invest in upgrades to its IT systems and infrastructure.

Mr Ross said: “With Madison Dearborn Partners now on board alongside our other long term shareholders, Towergate has an ever more potent combination of corporate power and entrepreneurial spirit, which leaves us all very excited by the future that lies ahead.”