Global brokerage and financial technology firm BGC Partners has reported an 18% increase in adjusted earnings over the fourth quarter of 2020, helped by 12.8% revenue growth in its Corant Global business, which turned profitable last quarter.
Earnings amounted to $73.6 million in Q4 2020, compared with $62.4 million for the same period in the previous year.
However, for the full year earnings decreased by 2.3% to $315.4 million. Revenue similarly fell by 1.6% to $479.4 million for the quarter and by 2.3% to $2.06 billion for the year.
BGC explained that the overall decrease in revenue was mainly due to “the continued dislocations” caused by the COVID-19 pandemic.
Corant’s brokerage revenue grew 12.8% and 17.3% during the fourth quarter and full year 2020, respectively, and represented 10.8 percent of overall brokerage revenue in the fourth quarter – its highest ever contribution.
Corant Global is the new brand new of BGC Insurance and acts as the holding company for all the insurance interests of BGC Partners.
It comprises of insurance and reinsurance broking operations Ed, Besso, Piiq Risk Partners and Junge, alongside the group’s MGAs Cooper Gay, Globe Underwriting, and Epsilon, which continue to operate under their separate brands.
Corant posted record revenue for both the fourth quarter and full year 2020 as it continued to benefit from improved productivity from recently hired brokers and hardening pricing trends.
Corant’s growth was also driven by new business lines, including its aviation and aerospace business, Piiq, which won key new clients, driving record quarterly revenue.
Fenics brokerage revenue, meanwhile, comprised 15.5% of overall financial brokerage, also representing its highest ever contribution.
“I am incredibly proud of our people and their response to this challenging year. Our outstanding performance this quarter reflects our employees’ resolve, ingenuity, and dedication to client service,” said Howard W. Lutnick, Chairman and CEO of BGC Partners.
“Fenics, and Corant Global, BGC’s Insurance brokerage business, each generated record revenue. Fenics net revenue grew over 33 percent this quarter, led by a 41 percent improvement in Fenics brokerage revenue. Corant brokerage revenue grew by nearly 13 percent and turned profitable this quarter,” Lutnick continued.
“This success translated to record fourth quarter post-tax Adjusted Earnings and Adjusted EBITDA. We are well positioned for growth, creating a more profitable, technology-driven business.”
