Premium Credit reported £6.0 billion in lending volumes in 2025, citing rising demand for outsourced premium finance services during a period of regulatory scrutiny in the UK insurance market.
The company said demand for instalment finance services has increased alongside changes in the regulatory environment, particularly within insurance distribution and payment arrangements.
Chief executive Tara Waite (pictured) said the company continued to grow while maintaining its operating approach.
“We achieved another year of strong growth, with our lending volume reaching the £6 billion milestone, while we maintained margin discipline and operational efficiency,” said Waite. “Building on last year’s record performance, this year represented our strongest financial results to date and demonstrates our ability to sustainably grow, reflecting the effectiveness of our strategy and disciplined execution across the business.”
The company’s annual report noted that the Financial Conduct Authority concluded its review of the premium finance sector, recognising its role in maintaining access to credit for customers purchasing insurance.
In 2025, Premium Credit provided instalment payment options to more than three million customers in the UK and Ireland, compared with 2.9 million in 2024.
Financial results showed EBITDA of £121.0m, up from £113.3m in 2024, supported by growth in lending volumes and higher total income. Total income reached £196.0m, compared with £184.9m the previous year.
The company reported a loss ratio of 0.15%, compared with 0.23% in 2024, which it attributed to underwriting policies, credit protections embedded in products and the short duration of the loan book.
Lending growth came from both of the company’s main operating divisions. Insurance services
lending rose 8.6% to £5.3bn, from £4.9bn in 2024, while specialist finance increased 13.6% to £712.8m, compared with £627.7m in the previous year.
The growth in insurance premium finance was supported by a new non-funded business line. The company said its tax proposition contributed to growth within the specialist finance business.
Premium Credit said it has developed its insurance proposition from a traditional point-of-sale premium finance offer distributed through brokers to a model that also provides non-funded services to insurers and brokers that already have their own funding arrangements.
The company estimates that instalment payment volumes in insurance across the UK and Ireland represent a serviceable addressable market of about £60bn.
In 2024, around 23 million home and motor insurance customers paid using premium finance, including 60% of motor insurance customers and 41% of home, buildings and contents policyholders.
Premium Credit said businesses are also using instalment payment solutions to manage cashflow obligations in areas such as commercial insurance and tax payments.
The company has begun implementing a technology and data transformation programme linked to a shift toward a product-centric operating model. The programme includes the use of artificial intelligence alongside continued investment in systems, talent and operational resilience.
Under its long-term strategy, Premium Credit aims, by 2030, to help one in 10 individuals and businesses in the UK and Ireland manage payments through instalments.
Waite said the company intends to continue its approach to financial management and risk.
“As we move forward, we remain committed to sound financial management, prudent risk-taking, and maintaining the trust of our customers, partners and communities with a new, clear plan to continue our momentum through to 2030 and beyond,” she said
She also noted the outcome of the regulator’s review.
“On the regulation front, the Financial Conduct Authority concluded its review of our sector, recognising its value in helping to ensure access to credit for all,” Waite added.
