Insurance and shipping-focused law firms have seen partner profits dip this year, following a sustained period of investment which has driven revenues across the group to new heights.

Clyde & Co, Holman Fenwick Willan, Kennedys, Watson Farley & Williams, Ince & Co and Berrymans Lace Mawer all saw profits per equity partner (PEP) fall by between 2% and 15% during 2011-12, against an average increase in turnover of 12.6%.

Among the group, Berrymans saw the biggest PEP decrease, down 15.4% to £248,000, followed by Clydes, which reported a 9.1% drop in profits to £550,000 in the wake of its merger with legacy firm Barlow Lyde & Gilbert.

Meanwhile, Holman Fenwick, Kennedys and Watson Farley all posted PEP drops of about 2.5%.

Parabis Group – a new addition to Legal Week's top 50 rankings this year – reported profitability of £18.4m – static on last year – on top of turnover of £108m, giving the firm an estimated PEP figure of £1.8m as it has just 10 equity partners.

Parabis is the umbrella parent company of insurance litigation law firms Plexus Law and Cogent Law. Plexus acts purely for defendants, with Cogent advising on the claimant side.

Other than Parabis, the decreases in PEP come on the back of heavy investment from the group in areas such as international expansion and IT.

Kennedys senior partner Nick Thomas (pictured) said: "Reduction in PEP can be attributed to a number of things, including pressure on chargeable rates, not keeping pace with wages and other costs and international investment."

Despite the drop-off in profits, the group's revenues continue to grow, driven by continued international expansion.

Clydes saw the largest increase in turnover across the UK top 50 as a whole this year, reporting a jump of 35.4% following the Barlows merger.

The insurance giant has seen post-merger fee income reach £287m, up from £212m, with the firm increasing its office count by four over the year.

Holman Fenwick, Kennedys and Watson Farley also posted double-digit revenue growth of 10%-13% during the year, after Kennedys tied up with a number of its international alliance partners and Holman Fenwick continued to expand its international footprint with launches in Perth and Sao Paulo.

Ince senior partner James Wilson commented: "During the year, we have invested strongly in our international offices and opened a new office in Monaco.

"Despite a challenging economic environment globally, we continue to see positive developments in the shipping, energy and insurance sectors, with increased growth coming from Asia."