Accounting and related services company WHK Group has reported strong growth in its general insurance income for the 2012 financial year.

General insurance commissions rose 21% on last year to $2.9 million, while life insurance adviser payments increased 3% to $7.7 million.

In contrast, ongoing fees and commission for financial planning advice were down 11% to $45.7 million and up-front fees and commission for financial planning fell 4% to $6.5 million.

WHK Group MD John Lombard says advice remuneration fell as investors left markets.

The group’s Australian operations, including accounting and insurance, reported a 2% increase in revenue to $353.9 million. The New Zealand business grew 5% to $59.1 million.

Net profit from the two countries was $10.2 million, down from $17.8 million last year.

The profits decline was attributed in part to the centralising of WHK’s back-office operations and a new remuneration model for principals, which led to implementation costs of $11.9 million.

Mr Lombard says the group is well placed for this financial year, with a strong balance sheet, conservative debt and an experienced management team.

“In 2013 the group will focus on organic growth revenue, tightly managed cash flow and shifting the business to more advisory services,” he said.

“The group’s transformation projects are expected to be completed by the end of October and this will provide immediate benefits and lay strong foundations to support the next phase of organic growth.”