Insurance broker Towergate made a loss of more than £720 million last year as it underwent a drastic restructure of its £1 billion debts.

The Maidstone-based underwriter lost £553 million on the value of businesses it acquired after years of growth.

Its latest accounts also showed income fell 8.8% to £376.7 million, which it said was partly due to the uncertainty of the group’s restructuring.

The debt-laden company was put up for sale last November and announced a restructure in February, which reduced its debt from more than 10 times its earnings to nearer 4.6 times.

It was taken over by a group of its bondholders – represented by Highbridge, KKR and Sankaty – for £735 million.

And £122 million of cash was injected into the firm.

Towergate was forced to make several redundancies and overhaul its business plan after its strategy, which saw it acquire nearly 300 broking and underwriting agencies since 1997, turned sour.

The group distributed insurance products worth £3 billion last year mainly to retail businesses and small to medium-sized enterprises.

Interim chief executive Scott Egan wasted no time in transforming the management of the company.

He has poached several big figures from US rival Arthur J Gallagher, having tempted away boss David Ross to become its new chief executive after a “transition period” with another firm.

Mr Egan said: “2014 was a challenging year.

“Confidence in Towergate was tested with performance in all divisions affected by the group financial restructuring.

“However, significant progress has been made in multiple areas. Towergate has attracted long-term supportive shareholders in Highbridge, KKR and Sankaty.

“Towergate continues to attract talent. The board remains focussed on operational delivery in 2015, and there are some early signs of recovery as the business stabilises.”

Towergate employs about 5,000 staff at 120 offices in Maidstone, Sevenoaks and Whitstable.