Towergate, the ambitious Kent-based insurance group, has defied "hostile" market conditions by hiking revenue by 13 per cent.

In a preliminary announcement, the business jointly founded by Sevenoaks multi-millionaire Peter Cullum expects commission and fee income in 2008 to come in at around £320million, compared to £279million in 2007.

Towergate employs some 300 staff at its offices in Maidstone, Sevenoaks and Whitstable, and 5,000 more nationwide.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) is likely to be marginally ahead of the £109million achieved in 2007.

Towergate said that sales in the first quarter of 2009 were strong in both broking and underwriting divisions, thanks to 80 new staff and a sharp increase in electronic trading of Towergate products.

The group reported that despite the downturn and consumer uncertainty, which made "an extremely challenging market for insurance brokers and their customers", the outlook for the rest of 2009 remained positive.

It was well positioned across its spread of specialist markets, and continued to adapt to the challenges posed by the market downturn.

Mr Cullum, executive chairman, said: "I am pleased to report a solid performance for 2008 against a backdrop of the most hostile market conditions in my experience, and a highly encouraging start to 2009.

"While conditions in the market remain tough for our customers, we have continued to invest in sales, service and innovation across the group to deliver on our promises and enable us to maintain our high levels of customer loyalty."

Towergate has also renegotiated the terms of its long-term banking facilities, which Mr Cullum said would provide further financial stability and ensured it was well placed to continue the group’s strategy of organic growth and value adding acquisitions.