lnsura ce ••• DATA SUPPi.JEDBY Times ::1mas
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Fitch Ratings 0 Read more online at insurancetimes.co.uk
••• Fitch ::1mas Ratings Contents
Director of content 05 Introduction Saxon East The effects of the Covid-19 pandemic are yet to Editor make themselves felt on company results, but the Yannick Guerry Top 50 ranking keeps evolving Chief sub & production ditor Graeme Osborn Insight editor Matt Scott 06 High fliers of 2020 Associate editor IMAS profiles the 1 O brokers that have created the Katie Scott most value over the past year: not always who you might expect Reporter Clare Ruel Head of research Savan Shah 09 Consolidation continues Art editor With the Aon-Willis deal the broking industry's Yvette Beattie biggest ever, mergers and acquisitions continue to Head of sales be a major driver of change Richard Turner Delegate & recruitment sales Leah Keating 14 Vulnerable customers Commercial manager What the industry can do to help customers feeling Jack Thomson the financial fallout of the pandemic - and feel the Head of paid content/ benefits itself subscriptions HayleyC harlick Publishing director Alex Mclachlan 1 7 Top 50 broker profiles Head of events Read our take on the companies that have made Mandy O'Connor the rankings Head of finance Paul Carey Managing director 46 Vital statistics Tim Potter Revenue, EBITDA and much more for the UK's biggest insurance brokers
Customer services [email protected]. co.uk 50 A piece of advice Printed by: Warners Midlands Pie. © 2020. Olly Laughton-Scott on what buyers and sellers in All rights reserved. No part of this publication may be reproduced or transmitted in any the still-buoyant mergers and acquisitions market form, by any means, electronic or mechanical, need to focus on including recording, photocopying or any information storage or retrieval system, without writtenperm ission from the publisher.
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Matt Scott Insight Editor PUTTING COVID-19 INTO PERSPECTIVE
his year has been difficult Ardonagh Group both slipping two places • While it's been a difficult time for the insurance industry, apiece to make way for these newcomers to for the insurance industry, the T as it has been for most of the top fivefor 2020. full effects of the pandemic has the world. Ardonagh will be hoping for a quick yet to make itself felt on The Covid-19 pandemic return to the top five, however, with its company financials - and only started hitting the headlines at the acquisition of Top 50 rival Bravo Group set our Top 50 rankings beginning of the year, so most of the to bolster its brokerage figuresfor next financial results in this year's edition of the year. And, indeed, the combined figures for Insurance Times/IMAS Top 50 Brokers have these two businesses this year would have yet to show the impacts of Covid-19 on the been enough to secure them fifth spot in broking industry. But that doesn't mean the listings. this report is totally impact-free. The Top 50 listings had two new entrants Indeed, several of our list entries have this year in the form of Kaufman Group and laid out exactly how their business has Countrywide Legal. The latter will be under responded to Covid-19, although further the spotlight again next year after being impacts of the pandemic will continue to named as one of the top performers by filter through into next year's figures. IMAS's Olly Laughton-Scott (read his full Covid-19 aside, however, the big news of analysis on page 6). And it would be no 2020 has been the $30bn mega-merger surprise if the broker has made its way between broking giants Aon and Willis that higher up the list when we come to write will undoubtedly see the combined pair this report in 12 months time. climb to the top of the listings once the Before we come to that, however, merger filters its way through to the next there is still a lot more to digest in this set of financial results. year's edition. On page 9, IMAS partner John Nisbet Marsh holds on at no1 dissects the figures to see what is driving Further impacts But, for now at least, Marsh continues to growth across the different sectors that hold on to the number one spot in our make up the Top 50 Brokers. And, on page of the pandemic listings, despite a dip in brokerage over the 50, Laughton-Scott draws on his 25 years' past 12 months, with Willis and Aon in experience of the market to offer some will continue to second and third respectively. sound advice to both sellers and buyers of filter through into Outside the podium spots, Hyperion has broking businesses. broken into the top five for the firsttime And who knows, maybe some of this next year's after a mammoth growth in its brokerage. advice could even serve to help drive figures Arthur J Gallagher, too, has climbed further M&A activity as we move forward back into the top five, with BGL Group and into 2021. ■
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••• Fitch ::1mas Ratings High fliers of 20� 'Our Top 10 demonstrates the HONOUR ROLL OF THE PAST SEVEN YEARS dynamism of the market. Covid-19 First Second Third will create new l 2019 Aston Lark CFC Underwriting Animal Friends challenges, but also 2018 Granite First Central Berry Palmer Lyle opportunities. 2017 Simply Business CFC Underwriting Marsh Success next year 2016 Hastings Simply Business Crispin Speers will come to those 2015 RK Harrison BGL Group Stackhouse Poland 2014 Hyperion RK Harrison Arthur J Gallagher that are already Hastings Hyperion Stackhouse Poland adapting' 2013 OLLY LAUGHTON-SCOTT
REST OF THE BEST #1 #2 #3 We have not sought to rank the seven firms CFC GRP Hyperion Bravo Group Arthur J Underwriting Gallagher Brokerage Brokerage Brokerage Brokerage Brokerage £70.4m £150m £783m £77.2m £734.?m EBITDA EBITDA EBITDA EBITDA EBITDA £27.3m n/a £206.3m £22.1m n/a With growth of 22% and A secondary buy-out to Growth of 35%, with It's in, it's out and then Gallagher has been one a top-tier earnings before Searchlight in February almost the same level back in the Ardonagh of the most consistent interest, tax, depreciation this year was lucky with of EBITDA growth Group again - or was acquirers. Academic and amortisation its timing. GRP's growth achieved. With organic it ever really out? No research shows 'little and (EBITDA) margin, CFC was acquisition-driven, growth at 11 %, this matter, Bravo has made often' typically creates has again produced an but staff have been achievement was not just a success of its hub the most value and excellent set of results. successfully tied-in and acquisition driven. Such and spoke strategy and Gallagher has done this Second last year and kept motivated. Previous has been its growth, used its acquisitions successfully. It doesn't in 2017, this time we backers have done it is now up there with and network to fuel a provide a breakdown have put the broker in very well, but repeating the big boys. Significant successful acquisition of its numbers, so no the top slot, as building the trick becomes staff ownership should play driving growth podium place. shareholder value is increasingly difficult. continue to turbo charge of 28%. all about consistency. its performance. CFC has this in spades. Happy shareholders include the private equity house Vitruvian.
EBITDA growth: EBITDA growth: EBITDA growth: EBITDA growth: EBITDA growth: 54.8°/o n/a 35.2°/o n/a
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••• Fitch ::1mas Ratings
• IMAS reviews the Top 50 brokers and picks the best performers 20 over the last 12 months
NOTES FROM IMAS
CRITERIA creates value rather than merely size. potential cycle and discount this influence IMAS has kept the key criteria as consistent as is regularly seen in the stock markets. It as possible with previous years but needs Margin is individual excellent performance against to recognise the new entrants. Sustainable margin is just as important as peers that counts. sustainable growth. Recovery to acceptable Growth levels of profit following a poor year, while Past success This is clearly a key factor. It is, however, commendable, is unlikely to win an award. While it is not impossible to imagine, we not purely a drag race but one in which have yet to choose the same company overall increases in shareholder value Peer performance as the winner in consecutive years. This are reflected and we, therefore, focus on Where a sector has turned in excellent reflects the dynamic market and range of organic and acquisition-led growth that results, we have to look at the impact of a different activities undertaken.
outside the top three, but have highlighted what has been outstanding, from the largest to smallest by turnover
Berry Palmer Animal Bollington Right Choice Countrywide & Lyle Friends Wilson Legal Brokerage Brokerage Brokerage Brokerage Brokerage £41.5m £38.4m £35.9m £35.9m £18.2m EBITDA EBITDA EBITDA EBITDA EBITDA £14.7m £11.6m £8.8m £11.1 m £658k An organic growth story It has been a tough Having made a slow LDC took a minority The new No 50, getting if ever there was one. time for personal lines start after the merger stake in June 2018 onto the list with £18.2m Growth was not stellar, brokers, with several of the two businesses, and management has of revenue. Ten years just very good at 13%, big players going acquisitions are picking repaid its confidence. ago Berry Palmer & Lyle but, with margins of backwards. On the up, giving growth of 34% The personal lines motor was in the same spot 35%, no shareholder podium last year, Animal with a credible EBITDA market is extremely with £16.3m. It is now is complaining. The Friends still posted 16% margin of 25%. Maybe tough, but Right Choice at £41 .5m, an increase business that everybody revenue growth in the being up north has its has grown by more than of just over 150%. If would like to own, but most recent year. We advantages as Bollington 20% and still achieved Countrywide can do the only those who work in suspect that Covid-19 Wilson picks its own an EBITDA margin of same, it will make its the business do. will not have done them special path. 25%. Others will wonder two shareholders very any harm either. how it is doing it. wealthy indeed.
EBITDA growth: EBITDA growth: EBITDA growth: EBITDA growth: EBITDA growth: 28°/o -9.1 °/o 6.4°/o 34.8°/o 22.2°/o
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••• Fitch ::1mas Ratings CHANGE AT THE TOP
• IMAS partner John Nisbet looks at how continued M&A activity continues to change the composition of the Top 50 brokers
Source: IMAS Datagraphic: InsuranceTimes 0 TOP 50 CUMULATIVE REVENUE
- 2016 - 2017 - 2018 2019 2020 £10,000m
£9,000m
rn,000m
£7,CXXJm (revenue based on a like-for-like basis) £6,000m hile writing the commentary to the 2019 To p 50, Marsh £5,CXXJm • had only recently completed £4,CXXJm its acquisition of JLT, cementing its position at the £3,CXXJm top of the list. We naively thought that deal might mark £2,CXXJm the last big change among the top five £1,CXXJm names for a while. Well, we were wrong. The announcement earlier this year, and 0 0 10 20 30 40 50 shortly before most of the world went into Top 50 Brokers lockdown over Covid-19, that Aon and Willis intend to combine in the sector's largest-ever deal, will see further change at the top of the list. The combined entity is Source: IMAS set to easily leapfrog Marsh to take the top Datagraphic: InsuranceT,mes spot in 2021. 0 HIGHEST GAINERS IN 2020 Just how far ahead of the rest Aon will be is a question we will have to wait until next year to answer, as the deal has yet to be completed and our rankings still include Willis and Aon separately, in second and third places, respectively. But, even ignoring the Aon Willis deal, this year has again been one of change at the top. Indeed, five of the top six brokers have changed positions on last year's ranking, which is perhaps unusual in such a mature industry, but reflects just how closely pegged some of the largest names are in Eldon Simply C�r Specialist Bollirgton Right Cho,ce Barban Nexus Alar Bo�I Hyperion Insurance BuSness lnsurarce Risk Wilson Insurance Insurance UrderMiting Group Insurance terms of annual revenue. Services Group Behind the Big Three ( or two as it will
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Source: IMAS Datagraphic: Insurance Times Q YEAR-ON-YEAR REVENUE GROWTH
The threshold for entry to the Top 50 this year was £18.2m, a substantial drop from the figure of £21.6m in 2019 Hyperion Ins Bollington Bravo Group Simply CFC Right Choice Specialist PIB Group Animal Nexus Group Wilson Business Underwriting Insurance Risk Friends Underwriting soon become) was Hyperion in fourth, a jump of three places on 2019, followed by Source: IMAS up businesses outside the Top 50, this Datagrapl,ic:Insurance Times Arthur Gallagher in fifthplace, up one from level of growth should not be a surprise - 2019. BGL and Ardonagh, meanwhile, were 0 a lot of it has come from mergers and at sixth and seventh respectively, both EBITDA MARGINS acquisitions (M&A). falling out of the top five in a year when ACROSS TOP 50 There has been a great deal of talk personal lines brokers generally have - 2014 2013 recently about the hardening market and, struggled to make much headway on the ■ Mean fl.Aedian certainly, the impact of Covid-19 is seeing list (of which more later). rates rise across many lines of business. This year's figures have, by and large, This will feed through into increased been based on year-end numbers that income for many of the Top 50. So we pre-date the impact of Covid-19. As this is, would expect aggregate revenues to get arguably, proving more of an immediate close to £10bn next year, with the sector challenge for many personal lines brokers top line being driven by both organic and than those focused on commercial lines, we inorganic growth. would not expect those fortunes to be This year, the Top 10 brokers in the list reversed short-term. accounted for 73. 7% of total revenue, or £7 .1 bn of the £9 .44bn, up marginally on New entrants and notable gainers the previous year (73.1 %) . This suggests In a consolidating market there will always that although the market is consolidating, be new entrants to the Top 50, but this year at least at the sharp end of the Top 50 it is saw only two, Kaufman Group and not markedly concentrating. Countrywide Legal, at positions 46 and 50, The highest level of revenue growth was respectively. And with several recent deals posted by Hyperion, up 35% year-on-year. among the Top 50 (Aon/Willis, Ardonagh/ As an international group with operations Bravo, for example), there will be at least 2020 2019 outside the UK, that can change the way in this many again next year. which it reports and it is not clear how far Other brokers making notable advances this was real like-for-like growth. within the Top 50 include Eldon Insurance from the figure of £21.6m in 2019. In Services (recently renamed Somerset compiling the Top 50 each year, IMAS The organic way Bridge and part of a group where levels of analyses the top 120 brokers in the UK. Perhaps most striking when looking at intercompany trading may be distorting Looking just below the waterline of 50th relative growth is that two of the five fastest year-on-year comparisons and unduly place, there are 18 companies with revenue growing businesses in the list, Simply flattering the growth as measured here), within £Sm of the entry level. Several of Business and CFC Underwriting, got there Simply Business (up seven places to 19) these firmsare growing at a healthy clip without undertaking any meaningful M&A. and Clear Insurance (up six places to 42). and we would expect to see a number of Both businesses have been acquired in Honorable mentions also go to Nexus them making their way into the annual list recent years at premium valuations and, in Underwriting (30), Specialist Risk (31), before too long. demonstrating such robust organic growth, Bollington Wilson (38), Right Choice are going some way to justifying the prices Insurance (39) and Barbon Insurance (44), Growth and profits paid for them. which all rose five places in this year's list. The Top 50 in aggregate saw growth of But, if, as the saying goes, 'revenue is The threshold for entry to the Top 50 5.65% in overall revenue, to £9.44bn. vanity, profitis sanity (and cash flow is this year was £18.2m, a substantial drop Given the number of consolidators buying reality)', what of EBITDA (earnings before
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The rise and rise of private equity (PE) 0 AVERAGE TOP 50 EBITDA MARGIN BY SECTOR as owners in the sector has been a common Source: IMAS feature of the Top SO for many years. This Datagraphic: InsuranceTimes OCf½ ------� year, 19 of the Top SO are private equity owned, the same as last year, but their 2020 2019 ■ share of the aggregate brokerage has f:fJJ/, t------1 increased to 29.1%, from 2S.9% in 2019. Most of this growth has been acquisitive, 40% t------1 and the PE-backed consolidators continue to hoover up small and medium-sized brokers from outside the Top SO. But how 3Cf% t------1 long can this continue? And is it a strategy that can continue to deliver the necessary 20% growth required by a PE investor? Among the most high-profile consolidators, PIB Group advanced two 10% places in this year's ranking, from16 to 14. Global Risk Partners was up one place, 0% from 14 to 13. Aston Lark, meanwhile, was lntemat,ona Lmclon Commercial Personal Lines l a non-mover at 20, and Bravo Group was up two places, from 24 to 22. Source: IMAS Datagraphic: Insurance Times All posted double-digit growth in 0 revenue, as did Specialist Risk, Bollington TOP 50 BY SECTOR Wilson and Clear Insurance. ■ 2020 2019 Fewer brokers All of these acquisitive groups are competing for a diminishing number of small and medium-sized brokers. All have backers with similar return requirements. As these groups get bigger, small and medium-sized acquisitions will not 'move the dial' in the same way they once might have. The obvious conclusion is that there will have to be consolidation among the consolidators, so watch this space. The endangered species from an ownership perspective continues to be the listed broker. Last year, JLT became part of Marsh, a International Loncon Commercial Personallines US-listed business, and the board of Hastings Insurance Services recently recommended a takeover by Finnish insurance group Sampo. interest, tax, depreciation and business models. The table on pp46-49 lays Assuming that deal goes ahead, the only amortisation) and margins across the Top bare the good, the bad and the ugly. UK-listed groups left in the Top SO will be SO this year? Saga Services and M Insurance Services, Aggregate EBITDA among the Top SO is Ownership neither of which is a 'pure play' insurance a difficultnumber to pin down due to a Marginal changes in the ownership mix this broker. A UK equities fund manager or small number of gaps in the available year reflect the continuation of individual investor seeking exposure to the disclosures. But, based on what is longstanding trends - the near-extinction of insurance broking sector has no real available, we can see that the average UK-listed brokers and the continuing opportunities to invest in it. EBITDA margin this year was 22.1%, a importance of private equity as owners. slight improvement on the 21.SO/o in 2019's Overseas ownership, however, remains Sub-sectors Top SO. dominant in terms of overall brokerage, There are only fiveinternational brokers in Year-on-year margin improvement was controlling around half of the total, but the list. But, for the firsttime, this year they visible across all sectors except personal through only 11 brokers (or 22%) of the make up all of the top five and just under lines. Of course, the mean and median Top SO by number. Privately owned brokers half of all revenue. bring together a wide range of individual still account for around one-third of the The London and commercial brokers performance levels across often quite Top SO by number, and remain particularly are almost neck and neck, comprising 13 different, and not perfectly comparable, important in personal lines. and 12 names on the list respectively and
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each accounting for 14% of the total Top Source: IMAS 50 revenue. Datagraphic: Insurance Times Personal lines brokers remain the largest 0 HIGHEST REVENUE PER EMPLOYEE (£000s) single group, comprising 20 of the Top 50 5(X) �------and just under a quarter of the revenues, but have generally failed to gain much ground on the list this year. Only four of 400 those 20 have moved up the rankings this year (Right Choice, 1st Central, Animal Friends and Countrywide Legal). 300 We have remarked in previous years that much lower levels of renewal retention and the pace of change in technology affecting 200 how consumers buy insurance have made it possible forsuccessful personal lines 100 businesses to rapidly grow brokerage. Many of the personal lines brokers in the Top 50 are 'young' businesses that most of 0 us probably hadn't heard of 10 years ago and have got to where they are through organic growth. The other way to quickly move up the rankings is, of course, through M&A, where Source: MAS there continues to be far less activity in Insurance I ANNUAL IMPROVEMENT IN REVENUE PER Datagraphic: Times personal lines than in other sectors. 0 One reason for this has been the more EMPLOYEE (£000s) limited interest in the sector from private equity. Lower levels of retention and a
different distribution dynamic - ie one where aggregators make customer acquisition expensive and capture a lot of the economics - have made PE investors much more circumspect about this segment. Faced with a reducing number of new deal opportunities and increasing valuations across commercial broking, however, PE investors may soon begin to turn their sights towards personal lines.
Employees The Top 50 brokers employ an aggregate £0 UK workforce of more than 50,000, and the ��0 ¼ °' a" cf rjj> �0 ., >£>" -p" qi 0/j;Y 12 I Top 50 Brokers 2020 I lnsuranceTimes 0 Read more online at insurancetimes.co.uk BEING WELL IN THE WORKPLACE • One of the side-effects of the Covid-19 pandemic has been on the mental health of employees. Compass Underwriting's Andrew Briant talks about a solution The Health and Safety Executive to bring their product into the and early intervention is more has placed a legal requirement on SME market via the professional effective than cure. The approach is every organisation with five or more intermediary market. to be proactive, not reactive." employees to conduct occupational Intermediaries working in the Compass and Champion Health health stress risk assessments. commercial package world are have designed this intermediary This has put an enormous well placed to help their clients based product to work with pressure on employers to proactively understand and manage these employers with 10 or more staff and manage the well-being of their staff additional legal requirements and costs around £810 a year. A recent - and not only that - to be able to can now offer them an effective non 2020 Deloitte's report indicates demonstrate their approach as well. insurance solution. that the return on investment with On top of that, the Covid-19 these type of products, taking into Pandemic and regional lockdowns, Cutting edge account the reduction in lost time the lack of certainty, and ever The product is focused around and increased productivity, should changing rules are causing huge the latest cutting-edge research achieve savings of more than six issues to employers of all businesses delivered in an engaging and times the cost. across the UK. It has been well understandable platform for each Andrew Briant, managing director documented that the whole situation employee to undertake a totally of Compass, said "I feel that this is is causing untold stress on the confidential online assessment giving an important new product coming workforce. Nearly 13% of total them tips, guidance and referrals into the broker community as, with sickness days can be attributed to for additional help and support. the perceived reputational damage mental health issues - and as this The employer then receives an to the insurance industry as whole situation continues into the winter anonymised detailed report to help caused by insurers' interpretation this can only get worse with an plan their strategy. Champion Health of business interruption clauses, it expected increase of 25%. will then provide a one-to-one video is essential that brokers continue conference to explain and guide to demonstrate their value to their Partnership the employer through the report to clients by offering a wide range of But for SM E's with their lack of understand its implications. services and support." resources for these additional The founder of Champion Heath, requirements, on top of trying Harry Bliss, said "At the heart of to keep their businesses afloat this is the understanding that we Lr\ - Champion Health, a leading all share that health and wellbeing �7 specialist in this area, have partnered directly correlates with productivity. compass with a prominent accident and Simply put, healthy employees are underwriting health MGA, Compass Underwriting, productive employees. Prevention lnsuranceTimes I Top 50 Brokers 2020 I 13 0 Follow us @lnsuranceTimes_ ••• Fitch ::1mas Ratings VULNERABLE CUSTOMERS ON THE RISE POST-COVID-19, BUT INDUSTRY CAN HELP he coronavirus research says the true figure is have affected businesses and pandemic has likely to be much higher. working practices. • hit many people In its research report The True Results from Consumer hard. It has led Cost of Credit in the Motor Intelligence's Covid-19 tracker MATT SCOTT to a growing Market, Consumer Intelligence showed that, at the end of May, number of vulnerable customers found that 12 weeks after 27% of people were on • New research from across the UK and an increase lockdown began, 25% of people furlough, 13% had working Consumer Intelligence, in demand for credit when said they were quite worried hours cut and 7% had lost published exclusively buying motor insurance. about their finances,while 11% their jobs. New research by Consumer were very worried. Younger people were the by Insurance Times, Intelligence, published Here, the Covid-19 pandemic most likely to have been put on reveals how vulnerable exclusively by Insurance Times, is undoubtedly having an furlough, with more than 30% customers are being has foundthat around 16% of impact, especially because of of 18 to 34-year-olds on the affected by the pandemic UK consumers identifyas how lockdown restrictions and government scheme. and why this represents vulnerable, although the social distancing measures And Consumer Intelligence an opportunity for brokers and insurers 0 IMPACT ON EMPLOYMENT STATUS 35 - 30 � 33 � � 25 1 21 l 20 � - - 15 17 - 10 � - � 13 9 9 - 5 7 I 6 0 lam now Been No impact to Normalpace Worlong hours Sala,y Lost work or Taken on working from furloughed my work of work reduced reduced oik:Joff extra work/ home closed increased hours 14 I Top 50 Brokers 2020 I lnsuranceTimes 0 Read more online at insurancetimes.co.uk ••• Fitch ::1mas Ratings £1.6bn of gross written premium and recorded a £302m operating profit. HOW WORRIED ARE YOU ABOUT YOUR The Consumer Intelligence 0 research has also shone a light FINANCIAL SECURITY? on just how important instalment income is for the UK motor market, with premium finance income accounting for 16% of motor brokers' total income, according to an October 2019 report by the FCA. The research also found that 25% almost one-third (32%) of quite worried drivers pay their insurance premium in instalments, but • that figure could start to rise as the impact of the Covid-19 pandemic continues to be felt. This means that those brokers and insurers that truly understand their credit chief executive Ian Hughes said "That means all insurers Hastings's annual report proposition, and offer the right this is going to be an ongoing and brokers need to be asking revealed £105.6m of income options to their customers at the issue for the UK motor themselves some hard credit from premium financeinterest right time, could set themselves insurance market to grapple questions." in 2019, while, in the same up forfinancial success. Not with forsome time. And those questions, Hughes period, it wrote premiums only by way of a boost in "Credit is going to become a said, need to explore which totalling £961.6m and recorded revenue, but also with a boost big issue formotor insurers in consumers are looking for a £109.7m operating profit. in reputation and loyalty by 2020, and beyond," he said. "In credit, how insurers and Meanwhile, Admiral's helping vulnerable customers a volatile market and against a brokers are offering credit to instalment income from motor to better access motor backdrop of recession, more them, and how much is being insurance was £83.9m in 2019, insurance provisions. people are going to need to charged to pay for a policy in up from £81.4m in 2018 and spread out the cost of large monthly instalments. £56.lm in 2017. Credit complication insurance premiums. Another big question forthe And Direct Line Group "The credit picture has always market, Hughes said, is around revealed £83.Sm in instalment been complicated, and it's vulnerability, and how offering income in its latest results. clearly now more complicated credit affectsthose vulnerable In the same period it wrote than ever," Hughes said. customers that insurers and "There are real advantages brokers are trying to help. for the organisations that can "This is your chance to make vary credit. The organisations sure your credit strategy is that can begin to vary credit credible for the next stage of won't just be able to the living-with-Covid world," he demonstrate that they have said. "It's also your chance to treated customers individually make sure it does your business This is your and fairly, they will also be able credit, too. to more effectively target the "The first step is to chance to customers and risks they want understand your credit make sure to attract. proposition, how it fits into "One of the things brands your pricing strategy, and your credit can win with a sophisticated where you sit in the market." cost of credit will be the right to strategy is market to the customers it Incredible opportunity credible for really wants. While rising customer "And for those brands that vulnerability creates challenges the next can get close to their customers 2 2 for the insurance market, it also and understand their needs and presents opportunities for stage of pressure points, there's a Impacted in New job brokers and insurers alike. the living further opportunity to develop another way or taken Premium financeand new insurance and credit alternative WOO< instalment income is a big with-Covid products to fulfil predicted market. world demand." ■ lnsuranceTimes I Top 50 Brokers 2020 I 15 0 Read more online at insurancetimes.co.uk ••• Fitch ::1mas Ratings #1 Marsh 2019: 1 UK chief executive: Chris Lay Brokerage: £ 1 . 2 b n ■ Management Marsh continues in the top spot in the Insurance Times/ !MASTop 50 Brokers, giving the broking giant its fourth year as top of the rankings, even if brokerage was down nearly 20% to £1.17bn. Marsh's dominance has been boosted by the acquisition of JLT, which reported global brokerage of £1.06bn in 2018. The $5.6bn deal, completed in September 2018, will result in a $250m in cost savings. Chris Lay remains at the helm of the UK and Ireland business. The global broking group is led by Dan Glaser. ■ Strategy Marsh has been quiet on the acquisition frontsince its purchase of JLT. Instead, Glaser has been closely watching the broker's biggest rival Aon as it carries out its merger with Willis. Glaser told analysts in the second quarter briefing this year that the Aon deal was "not good forthe market or for clients but is good forMarsh & McLennan". In the UK, Marsh has shown it is keen to innovate followingthe launch of a new sports, entertainment and media group. In January, Marsh revealed its intention to create a powerhouse network by combining its three brands - Marsh ProBroker, BluefinNetwork and Purple Partnership - into one, Marsh Networks. Led by Dave Hopwood, the merged network will provide additional services to brokers, such as help in buying businesses or selling their own firm. Marsh was one of the quickest brokers to react to the Covid-19 crisis. In February, it said many businesses were not prepared for "potential prolonged impacts on staffwelfare, operations, supply chains, and the broader economy arising from a globally-spreading infectious disease". The broker advised firms to review their resilience and crisis response strategies so they were prepared for the impact the virus might have. 0 £1,500m (IJ £1 AOOm :0 £1,300m e MMC boss 0 £1,200m Dan Glaser £1,100m has been :0 £1,000m closely )> £900m watching rival G)m £800m Aon's merger £700m £600m with Willis 2016 2017 2018 2019 2020 KEY: Ranking O up on 2019 0 no change O down on 2019 * New entry lnsuranceTimes I Top 50 Brokers 2020 I 17 0 Follow us @lnsTimesNews ••• Fitch ::1mas Ratings #2 0 Willis 2019:3 UK chief executive: Nicolas Aubert Brokerage: £1 . I bn ■ Management This will be Willis's last year in the Insurance Times/ IMAS Top 50 Brokers following its acquisition by Aon. The combined two firms will become a £2bn UK broking giant, almost certainly leap-frogging Marsh into top spot in next year's rankings. Shareholders approved the transaction at the end of August, finalising a deal that has been more than two years in the making and brings all the Willis management together with Aon. Aon chief executive Greg Case, who will head the combined company, initially proposed the deal shortly after rival Marsh snapped up JLT in September 2018. There was then a year of back-and-forth negotiations, but discussions took a knock after media leaks. Price also proved to be a sticking point, especially with Willis wanting more than a 20% premium on its share price to clinch the deal. It was finally announced in March 2020. Aon's Case has subsequently talked up the benefits of the deal, saying: "Together we'll be better for our clients on day one, driven by the complementary nature of our core businesses across solution lines and geographies, and will be better in the future driven by a shared commitment to analytics and increased ability to unlock new sources of value for our clients." The deal will cost Aon nearly $30bn and create the world's largest insurance broker. ■ Strategy Prior to the merger with Aon, Willis' big strategy had been to position itself as a consultancy service as well as its risk services. This was achieved by merging with Towers Watson in 2016. The deal meant Willis Towers Watson would serve around 80% of the world's 1,000 largest companies in 120 countries. Rival broking firm Marsh believes the Aon deal will also bring it advantages. Chief executive Dan Glaser said: "The big three becomes the big two. How could 0 £1.200m that not be a benefitto us?" rn JJ £1,lOOm 0 • Aon's £1,CXlOm merger with m £900m Willis will cost £800m nearly $30bn and create the m £700m world's largest £600m broker * KEY: Ranking O up on 2019 0 no change O down on 2019 New entry 18 I Top 50 Brokers 2020 I lnsuranceTimes 0 Read more online at insurancetimes.co.uk WE CAN USE TECHNOLOGY TO REBUILD PUBLIC CONFIDENCE IN INSURANCE • Jason Anthony, chief executive of MGAM, talks to Insurance Times about start-ups, tech-enabled managing general agents and why the industry can do better Public opinion of the insurance businesses have created value for MGAM also provide delegated industry is low. We must win some stakeholders by improving authority where the focus is on back the trust and confidence of customer journeys, business product which is currently more the policyholder who pays the process and Ml. However, others difficult to build and bring to premium that funds our industry. have fallen by the wayside. the market on an IT quote and Policyholders require improved lnsurtech, and 'disruption' in and bind platform. MGAM's in-house access to product, better value of themselves do not necessarily configuration team continues to in distribution and improved create value. develop and roll-out new product claims service. When setting up the business, to market to service MGAM Historically, the London market Anthony and his team spent the partners with breadth, ease of saw significant gains as a result first year focused on developing access and stellar capacity. of entrepreneurial actions such as the infrastructure. They wrote CE Heath's smallpox vaccination their first risk only after they were Jason Anthony has been in the insurance product (reducing the satisfied with the systems build. insurance industry for 30 years, 15 premium by 75% if an individual MGAM's motto is Transforming the spent running managing general was vaccinated). Similarly, after the Insurance Landscape. They have underwriters and managing general 1906 earthquake hit San Francisco, created processes and IT solutions agents. He co-founded Oxygen Heath said: "Pay all of our that deliver significantly faster, Insurance in 2005, which was policyholders in full, irrespective of more accurate and consistent purchased by AJG in 2008. He the terms of their policies". We can reporting solutions to insurer left AJG in 2014, set up MGAM use history as a guide as we walk and broker partners. MGAM's in 2015, and became an Acrisure through these uncertain times. proprietary systems also enable Partner in 2020. In the face of today's significant those data and management challenges and lack of public trust, information to be delivered in a MGAM can be contacted at business leaders might consider cost-effective manner. www.mgamutual.com how innovative actions from the MGAM is a highly tech-enabled past, combined with exceptional business underwriting UK liability, technological advances, could UK terrorism and UK cyber on line. rebuild public confidence. Excess of loss, retail package, We also need to consider how restaurants, office and surgery all stakeholders can be better and transactional are due to be served. Stakeholders include launched shortly, also all online. By shareholders, insurers, distribution the time this article is published, partners and policyholders. MGAM will also have launched an lnsurtech is a headline-grabbing online US riot and civil commotion concept, and indeed many product with an Acrisure Partner. 20 I Top 50 Brokers 2020 I lnsuranceTimes Follow us @lnsuranceTimes_ 0 Read more online at insurancetimes.co.uk ••• Fitch ::1mas Ratings #3 0 Aon 2019:2 UK chief executive: Julie Page Brokerage: £900m ■ Management Aon fell to third place in this year's Insurance Times/ IMAS Top 50 Brokers after it was leapfrogged by Willis, despite a near 10% increase in brokerage to £900m. Since reporting its results, however, Aon has acquired its rival in a near-$30bn move that will see the combined business inevitably jump to the top of the listings after more than two years of negotiations. Greg Case, who remains as group chief executive and will head up the newly formed business, said the merger with Willis will benefitthe broker's clients and overall business "driven by the complementary nature of our core businesses across solution lines and geographies". Julie Page remains as the broker's UK chief executive, and in July 2020 Aon announced it had appointed Andrew Tunnicliffeas the new UK chairman of its global and specialty division. Tunnicliffe has held several roles at the firm, including UK chief executive of commercial risk solutions, health solutions and affinity; chief operating officerfor commercial risk solutions, health solutions and affinityin Europe, the Middle East and Africa; and chief executive of Aon Global Risk Consulting. ■ Strategy In October Aon announced it was moving its parent company from the UK to Ireland as it seeks to reposition itself after Brexit. The decision, which will need to be agreed by its shareholders, will require the broker to create a new publicly held parent company incorporated in Ireland. But Aon was quick to stress that it will maintain its operating company headquarters at the Leadenhall Building in London. Aon was embroiled in controversy in the wake of the Covid-19 pandemic after it announced it was enforcing a 20% pay cut for all its staff, although the broker later reversed this decision in July 2020, 0 £9 £600m • Aon says IJ its merger £500m with Willis will m £400m benefit clients £300m and overall 2016 2017 2018 2019 2020 business KEY: Ranking O up on 2019 0 no change O down on 2019 * New entry lnsuranceTimes I Top 50 Brokers 2020 I 21 0 Follow us @lnsuranceTimes_ ••• Fitch ::1mas Ratings #4 0 Hyperion 2019:7 Chief executive: David Howden Brokerage: £783m ■ Management Hyperion has broken into the top five of the Insurance Times/IMAS Top 50 Brokers for the firsttime in its history after growing its brokerage by more than a third to £783m, up from £507m last year. David Howden remains as chief executive, committing his long-term future to the business he foundedin 1994 after announcing he intended to stay at the helm until at least 2028. Howden is supported in his role by new chief financialofficer Mark Craig, who joined the business in January 2020. Craig previously led the group's mergers and acquisitions (M&A) team, debt capital market activity and Treasury team. He has 20 years of lending and advisory experience working in M&A, leveraged financeand debt advisory. ■ Strategy In September 2019, Hyperion announced it was combining its retail and specialist broking businesses, Howden and RKH, under one management team led by Jose Manuel Gonzalez as chief executive. Howden said the combined broking group offers a "unique proposition" to its US broker partners. An organisational restructure was also announced, with Hyperion forming a new UK broking executive committee to sit above the combined businesses. Andy Bragoli, RKH chief executive, will lead this committee alongside his current role; Howden chief executive Chris Evans will be committee deputy in addition to his position. Barnaby Rugge-Price, chief executive of Hyperion X, will act as chair, supported by Paul Redgate as deputy. And in September, Howden announced the near £700m acquisition of A-Plan Group, which could see the combined businesses top revenue of flbn next year. Howden said that the complementary nature of the businesses, with Howden's reinsurance and 0 £800m London Market specialties and A-Plan's regional OJ presence, would be a driver for growth across the JJ £7(X)m group, acting as a "stepping stone" for further 0 £600m acquisitions to help create a UK broking powerhouse. m £500m JJ • Combined £4(X)m revenue G) m £300m could £200m total £1 bn 2016 2017 2018 2019 2020 next year KEY: Ranking O up on 2019 0 no change O down on 2019 * New entry 22 I Top 50 Brokers 2020 I lnsuranceTimes 0 Read more online at insurancetimes.co.uk ••• Fitch ::1mas Ratings #5 0 Arthur J Gallagher International 2019:6 UK chief executive: Simon Matson Brokerage: £735m ■ Management Gallagher has climbed back into the top fivein this year's Insurance Times/IMAS Top 50 Brokers after dropping to sixth in last year's report. The broker was aided by a near-11 % increase in premium to £735m, but this is still short of the £900m needed to break into the top three, a place that Gallagher used to call home. Simon Matson remains as UK chief executive after he replaced former boss Grahame Chilton. Matson previously headed Gallagher's London Market and Alesco businesses. In August 2020 the broker announced a leadership reshuffle, with Michelle Bree becoming chief operating officerfor Gallagher's UK retail division, having held the same position at MGA Pen Underwriting. Meanwhile, Simon Collings has joined the broker as managing director of the national broking and placement team within its UK retail division, succeeding Mark Armitage, who left the business at the end of March after a seven-year tenure. ■ Strategy Gallagher says it remains "keen to make acquisitions", with a favourable focus on UK retail, but only if targets meet the broking giant's cultural fit. Head of mergers and acquisitions Oli Homer said 90% of the reason why Gallagher buys a business is to do with cultural fit, with the numbers and due diligence following. "When you buy an insurance broker, it doesn't have stock, it doesn't have assets, it doesn't have clever algorithms - it's got people," he said. "It's about relationships. So, we are looking for businesses that want to join us, people who are going to enjoy being here. People that are going to add something." Group chief financial officer Doug Howell revealed 0 £800m Gallager has capacity to do another $1.Sbn to $1.6bn rn in M&A in 2020 "with cash and debt". IJ 0 £700m 7': • ITT • • Gallagher IJ £600m says it remains "keen £500m to make ITT £400m acquisitions" 2016 2017 2018 2019 2020 KEY: Ranking O up on 2019 0 no change O down on 2019 * New entry lnsuranceTimes I Top 50 Brokers 2020 I 25 0 Read more online at insurancetimes.co.uk THE FUTURE OF REINSURANCE AND COVID-1 9 • Fitch Ratings reinsurance and insurance directors consider some of the challenges the market faces in the wake of the coronavirus pandemic The coronavirus pandemic has syndicates were asked to review subordinated and equity capital deeply affected reinsurance in the worst-performing 10% of raised have, together, mitigated the many different ways - working their portfolios, together with all negative effect of pandemic-related remotely, estimating ultimate loss-making lines, and to provide claims. We expect traditional losses for claims that may remediation plans as part of the capital to remain strong in 2021, reach put far into the future, business planning process. This providing sufficient capacity for updating models for large losses resulted in a reduced capacity in cedants, albeit more selectively and working with cedants on the market and consequently an and at a higher price. The market new policy wording, terms and acceleration of price rises across position for traditional capital has conditions. What does this all the market. The profitability review stabilised, unlike that for alternative mean for claims, prices and capital is now a 'business-as-usual' part capital - a trend that we expect will in reinsurance? of the planning process and should continue into 2021. Price rises have grown in continue to provide support to Aon Securities Inc estimates momentum through the various pricing and underwriting discipline that assets under management 2020 renewal seasons, following in the market. have contracted by around $4bn the start of the coronavirus Even without the pandemic, in the first half of 2020. This is pandemic. Terms and conditions the insurance and reinsurance due to maturing programmes that are tightening. Reinsurance treaty industry needed to adjust prices could not be fully replaced by new improvements have caught up due to higher natural catastrophe issuances because investors are with the improvements in pricing claims and concerns over reserve more hesitant in allocating new in the primary markets that started adequacy and loss severity in US capital to reinsurance. Investors in 2018. The desire to protect casualty. We therefore expect the are seeking higher returns, given earnings from pandemic-related hardening market environment to the higher than expected losses claims and lower investment continue into 2021. in the past couple of years and income has led to more disciplined the longer than expected claims underwriting and policy limit Capital resilience settlement times that are leading management across the market. Tr aditional reinsurance capital has to trapped capital. We believe that In the London market, proved resilient in 2020 despite the 2021 renewals will be decisive underwriting discipline and pricing mounting pandemic-related losses in determining whether higher benefited from the market-wide and financial market volatility, expected returns are sufficient profitability review initiated by declining only by a low, single-digit to overcome these structural the performance management percentage amount by end-June challenges, or whether the market division at Lloyd's of London in 2020. A recovery in the financial position of the alternative capital 2018. As part of this process, markets and more than $15bn of market will continue to erode. 26 I Top 50 Brokers 2020 I lnsuranceTimes Absence of startups numerous segments that will entail reinsurance business was more In contrast to former hard market lengthy litigation. resilient than property & casualty phases where new reinsurers There is still uncertainty reinsurance in H120, helping to were founded so as to benefit as to ultimate costs for event stabilise earnings in the sector. from rising reinsurance prices and cancellation claims. Insurers can The global recession caused better terms and conditions, we make various assumptions on by the global lockdowns will have do not expect that a large number events being postponed rather mixed effects on the reinsurance of new startup reinsurers will be than entirely cancelled, which can market. Lower economic launched going into 2021. So far, have a significant impact on loss activity and the cancellation of new capital has been invested into estimates. Some insurers had discretionary coverages will reduce the market through either existing assumed an earlier resumption of insurance exposure measures market participants or through activity within the events industry such as payrolls, and therefore the alternative capital market, due than has transpired, leading to premium revenues. This decline to there having been no recent increasing loss estimates. For affects the reinsurance market large withdrawals of underwriting example, Beazley, one of the through quota share treaties in capacity and to total reinsurance London market insurers, recently particular. Lower economic activity capital remaining sufficient to announced that its loss estimate also reduces the claims frequency satisfy demand. for event cancellations has nearly in lines of business such as motor. Expected returns have dropped doubled from the one announced The combined effect is credit due to the lower interest rate in the H120 results. neutral in our opinion. environment and high levels Treaty renewals may exclude of competition. Furthermore, renewed claims directly linked Low interest rates alternative capital can move to the pandemic, although a Interest rate levels declined further more fluidly into the reinsurance deterioration of the pandemic in H120, with the onset of a global market through securitisations and situation may lead to new claims recession - the severity of which other structures, which traditional not yet considered in reserves. All has been unmatched since the reinsurers also participate in of these elements are reflected by Second World War. Reinvestment through sidecars and other unique the fact that total reported claims yields are significantly lower than platforms. reserves for the pandemic are running portfolio yields, putting still significantly below industry continuous pressure on investment Unknown losses estimates for ultimate losses of income. Lower interest rates The reporting season for H120 more than $50bn. will also partially offset recent highlights that ultimate losses from As the coronavirus pandemic has price improvements in property the coronavirus pandemic remain been accompanied by worldwide and casualty reinsurance. We largely unknown. Most claims temporary lockdowns on a global expect the ultra-low interest rate reserves that were booked in scale, both life & health and environment to persist at least over H120 classify as incurred, but not property & casualty reinsurance the next 12-18 months. reported, as cedants themselves have been affected, highlighting very often have not yet received the fact that the pandemic is claims notifications for anticipated a systemic catastrophe event losses. Business interruption by nature. Mortality claims for claims may be subject to legal reinsurers have centred on the disputes, while credit and surety US, due to a high life insurance Fitch losses take time to materialise penetration among the more after the onset of a recession. elderly population and the sheer Ratings Liability claims are often in size of the market. The life & health �----- lnsuranceTimes I Top 50 Brokers 2020 I 27 0 Follow us @lnsTimesNews ••• Fitch ::1mas Ratings founder and chief executive of Bo - NatWest's digital banking app. Before joining RBS, Bailie spent a decade #6 0 in private equity, leading large-scale buyouts, BGL Group and worked for PwC forfive years, where he 2019:4 qualified as a chartered accountant. Chief executive: Mark Bailie ■ Strategy Brokerage: In July 2020 BGL Group announced that it £714m was adding Premier Underwriting to its ■ Management insurer panel. BGL dropped out of the top fivein this year's Premier Underwriting specialises in car Insurance Times/IMASTop 50 Brokers after and commercial vehicle policies, focusing falling to sixth place in the listings despite a on customers who live outside cities, and 9% increase in brokerage to £714m. writes around £60m of motor insurance Meanwhile, Mark Bailie has been business forpartners across the UK. appointed as the group's new chief BGL works with 17 insurers and offers executive, replacing formerboss Matthew both panel and solus underwriting models. Donaldson, who stepped down after 20 Andy Pointon, director of insurance and Q BROKERAGE years with the business and seven years in aggregation at BGL Group, said: "Working the top job. with a market leading panel of insurer £800m ------� Bailie started in the role on 1 September partners is vital for BGL. Premier 2020 followinga secondment as one of the Underwriting has a reputation for agile £700m !------• four business unit leads for the NHS Test & pricing within customer demographics that Trace service - a key element in the align well to those of BGL's own brands and government's Covid-19 response. our affinitypartners. Bailie previously spent 10 years at the "The addition of Premier to our panel Royal Bank of Scotland (RBS), becoming ensures we are bringing our customers £400m 1------j group executive in 2015 and chief competitively priced products, without £300m �-�- �--� -�-� operating officer in 2016. He was the compromising on quality." 2016 2017 2018 2019 2020 which last year cut spending by £21m. Ian Donaldson leads the Swinton, Carole Nash and Autonet brands, while Derek Coles #7 0 heads URIS, which contains underwriting, Ardonagh affinity, wholesale and retail solutions. Rob 2019:5 Worrall, meanwhile, leads Ardonagh's SME Chief executive: broking as head of advisory. David Ross ■ Brokerage: £669m Strategy Ardonagh sealed a £2bn debt refinancing ■ Management this year, meaning the business has topped Ardonagh has been led by chief executive up its warchest foracquisitions. On David Ross for fiveyears. financialperformance, Ardonagh's major Ross is an experienced deal maker and, driver is to increase organic growth. following an investment by HPS in 2015, he On a like-for-like basis, revenues were has led numerous acquisitions that have flat in 2019, but would have produced 3% Q BROKERAGE made Ardonagh the UK's largest personal organic growth if they were not pulled back lines broker. by Swinton. Ardonagh expects the full Ross previously headed Arthur J benefitsof the Swinton acquisition to come Gallagher's international operations. through this year as it becomes more fully Gallagher launched a court case alleging integrated into the group. staffpoaching by Ardonagh, but all the Ardonagh's earnings to debt ratio was claims were dismissed last year, apart from around six in 2019, but the ratio this year is one breach of contract claim. higher after the refinancing took debt to Other key members of the management near £2bn. The company says the leverage team include Diane Cougi!l, who heads the will be reduced through acquisitions and financedepartment. She is tasked with organic growth, as well the winding down of 2016 2017 2018 2019 2020 executing Ardonagh's cost savings agenda, exceptional items and group cost savings. * Ranking O up on 2019 0 no change O down on 2019 New entry 28 I Top 50 Brokers 2020 I lnsuranceTimes 0 Read more online at insurancetimes.co.uk ••• Fitch ::1mas Ratings ■ Strategy In August, Hastings approved a cash offer by existing investor Rand Merchant #8 Investment Holdings (RMI) and Finnish Hastings insurer Sampo Oyl to buy Hastings's share 2019:8 capital they don't already control. Chief executive: Toby van der Meer Speaking to Insurance Times about the £1.7bn deal, Worth said Hastings is "very Brokerage: £330m pleased to accept that offer". "We think there's very good alignment ■ Management between those two companies and our Hastings solidifiedits eighth placed finish culture and what we are seeking to do as a from last year despite its brokerage leading digital insurer," he said. shrinking by 1.5% to £330m, marking its "We think that the price they've offered third year in the Top 10. at £2.50 a share plus the 4.5p dividend, Q BROKERAGE Toby van der Meer continues in the chief which goes to existing shareholders, is a executive role taken on in March 2018, good price that appropriately recognises having previously been managing director the inherent value in the company. It is £400m------� of the broker's retail division since 2011. clearly a good uptick in the share price, Van der Meer is supported in his role by which is pre the announcement on an chief financialofficer John Worth, who undisturbed basis, so it's a 47% increase on joined the board in May 2019 after the share price pre the announcement." performingsimilar roles at MS Amlin, the Worth added that the deal won't £200m f------4 Co-operative Bank, Hiscox and Aspen. influence Hastings's strategy, vision or Meanwhile, Mark Parker remains as initiatives as both RMI and Sampo have chief operating officerand formerchief been supportive of the firm's approach. £100m>------� executive Gary Hoffmancontinues in his RMI has been a shareholder in the 2016 2017 2018 2019 2020 new role as chairman. Hastings business since 2017. David Lockton, who in turn will focus on strategic growth. And in September, Lockton appointed #9 Troy Cook as chief financialofficer. Cook Lockton brings more than 25 years of financialand 2019: 9 operational experience to the role, most Chief executive: Neil Nimmo recently serving more than 20 years as executive vice-president and chief financial Brokerage: £325m officerat NPC International before retiring in 2018. ■ Management The US-owned broker remains static in ■ Strategy the Insurance Times/IMAS Top 50 Brokers Lockton has a global workforce of 7,500 rankings, making it into the top 10 for the staffand 52,000 clients. fourth year in a row and moving ever closer Like other businesses, Lockton has had to Hastings in the process. to quickly adapt to the Covid-19 pandemic, Updated figures for 2019 were not with all non-essential functions moved to available at time of analysis, so brokerage home-working for the time being. Q BROKERAGE remained level at £325m. Longer term, the company sees Neil Nimmo remains chief executive of digitalisation as a key business £400m------� the company's UK business, a role he has differentiator,a process that Lockton held for four years, having joined in 2007 is embracing. as part of the management team leading The broker is anticipating the impact of the acquisition of Alexander Forbes. claims fromthe Covid-19 pandemic to be Earlier this year, Peter Clune took over comparable to that of asbestos claims, but £200m >------4 from Ron Lockton as group chief executive, sees opportunities as well as risks, with Lockton, son of founder Jack Lockton, expecting a greater use of eTrading moving to the role of chairman of the platforms to drive efficienciesfor both £100m >------� Kansas-based group. brokers and insurers. 2016 2017 2018 2019 2020 He replaced the founder's nephew, lnsuranceTimes I Top 50 Brokers 2020 I 29 0 Follow us @lnsTimesNews ••• Fitch ::1mas Ratings particularly hard hit by Covid-19, announcing at least 300 redundancies at its Folkestone and Ramsgate sites as the #10 C pandemic affectedthe travel industry. Saga Services Profitsfrom the retail broking business 2019: 10 fell 14.7% to £90.2m (2019: £105.8m) in Chief executive: Gary Duggan its last annual report. As a response to the FCA's pricing Brokerage: £237m investigation, Saga revamped its renewal strategy, offering a three-year fixed price on ■ Management its products. Earlier in the year the broker Despite reporting a 6.4% fall in brokerage, reported it had already sold 320,000 Saga Services was still able to hold on to fixed-price policies. tenth place in the Insurance Times/IMAS Saga Services offers a range of cover, Top 50 Brokers after breaking into the Top including motor, home, travel, caravan, 10 in last year's listings. commercial van, pet, and motorhome. Gary Duggan continues as chief And earlier this year, the group turned Q BROKERAGE executive of Saga's retail broking arm, a down a 33p a share bid that valued the £400m�------� role he has held since 2018 when he business at £370m. Ex-Aviva boss Mark succeeded Roger Ramsden. Duggan Wilson was revealed as the architect behind previously worked at BGL, heading up the the deal, partnering with Munich Re and £300m1------, broker's general insurance partnerships two US private equity firmsfor the bid business. Prior to that, Duggan held several Saga revealed that it had rejected an • chief executive and managing director roles 'unsolicited and highly conditional' at Towergate, Barclays, GE and HBOS. approach, instead turning to shareholders for a cash injection. It wants to raise ■ Strategy £150m. Up to £100m will come from £100m1--______-----, Saga Group, which includes the retail formerowner Sir Roger De Haan. The deal 2016 2017 2018 2019 2020 broking and underwriting arms, has been will dilute existing shareholders. organic growth with additional acquisitions. Shuker said at the time of the deal: "This purchase marks another milestone for #11 C A-Plan and our growth ambitions. Cotters A-Plan Group is an extremely well-run broker, with high 2019: 11 standards and a great team of people, Chief executive: Carl Shuker and fits very nicely with our culture and values." Brokerage: £179m The acquisition followedthe group's announcement that it had spent £8.2m in ■ Management the year to 28 February 2019 completing High street broker A-Plan Group remained an organisational redesign of personal steady in the Insurance Times/IMAS Top 50 insurance business Endsleigh, which it Brokers, holding on to 11th place after acquired in March 2018. spending £8.2m on restructuring costs last Endsleigh began restructuring in 2017, year followingits acquisition of Endsleigh prior to joining A-Plan Group. This Q BROKERAGE in March 2018 for £17.4m included disposing of and closing loss The broker grew brokerage by 5.5% to making and non-core activities, while £5oom�------� £179m, up from£169m in last year's investing in modern policy administration report. Carl Shuker remains as chief systems and improved digital quote and £40Qm>------< executive after a management buy-out buy customer journeys. preceding the firm'sacquisition by And in September 2020 it was £300m>------< HgCapital in 2015. Shuker joined the announced that A-Plan was to be acquired broker in 1981. by Howden, part of Top 50 rival Hyperion, in a near-£700m deal. Shuker said the ■ Strategy takeover would allow A-Plan to tap into the In March 2020, A-Plan bought "financialpower of Howden", allowing for 2016 2017 2018 2019 2020 Northamptonshire-based SME commercial greater mergers and acquisition activity in broker Cotters as it looked to boost its the regional market. Ranking O up on 2019 0 no change O down on 2019 * New entry 30 I Top 50 Brokers 2020 I lnsuranceTimes 0 Read more online at insurancetimes.co.uk ••• Fitch ::1mas Ratings retail corporate and private clients division that will remain branded as Integro. All continue to be held under the Integro #12 0 holding company. lntegro In January 2020, Integro announced 2019: 13 that it had acquired Risk Transfer Group, Chief executive: Clive Buesnel privately owned parent company of Top 50 rival and independent specialist Lloyd's Brokerage: £152m broker RFIB. The transaction expands the ■ Management organisation's global footprint, with offices Integro climbed one place to 12th in this now situated in Asia, Middle East, year's edition of the Insurance Times/IMAS Australia, Europe and Bermuda. Top 50 Brokers, with last year's brokerage of Integration plans followingthe £152m having to be used due to updated acquisition are underway. The business figuresnot being available at the time of aims to combine all of the firm'soperations the analysis. this year. Q BROKERAGE Integro rebranded its wholesale division Jason Collins, co-head of Tysers Broking, as Tysers after its acquisition of the latter said: "This acquisition furthers our vision to brand in March 2018, and in July 2020 it become the leading independent specialist was announced that Clive Buesnel had broker in the UK. Our combination £200m 1------, been named as chief executive, a new role positions us well for the benefitof both our for Tysers in the UK. clients and markets." David Abraham, co-head at Tysers ■ Strategy Broking, added: "RFIB adds further The Lloyd's-focused wholesale division well-respected teams to Tysers. We have £50m 1------, makes up two-thirds of the company's UK a great opportunity to attract and further business. The group also has an retain the best entrepreneurial talent in 2016 2017 2018 2019 2020 entertainment and sports division and a UK our industry." already chairs the firm'sretail division, is now non-executive chairman of the group. Both Margrett and Cullum have retained #13 0 minority stakes in GRP. Global Risk The firm appointed Stuart Grieb as regional managing director forthe south in Partners August. Grieb has previously worked at 2019: 14 Marsh, Towergate, Brightside and Willis. Group chief executive: Mike Bruce ■ Strategy Brokerage: £150m Following the move by Searchlight, GRP branched into a new specialism at the end ■ Management of June this year when it bought specialist Global Risk Partners (GRP) has improved its broker Premier Choice Healthcare (PCH). brokerage by 11.1 % since last year's GRP's head of mergers and acquisitions Insurance Times/IMAS Top 50 Brokers, (M&A) Stephen Ross said: "Our intention is growing to £150m from£133m in 2019. The to drive further acquisitions of healthcare 0 BROKERAGE broker has also moved up one place in the businesses and portfolios, expanding our rankings, from14th to 13th, after coming in overall proposition to offer a suite of £300m at 17th on the list in 2018. healthcare products. This year saw a shake-up of GRP's senior "We believe that there is significant leadership as private equity firmSearchlight M&A opportunity in the healthcare market. £200mt------< acquired a majority stake in the business. We are keen to mirror the acquisition Mike Bruce assumed the position of success we have had in the UK regional �-�· £100mt-- ---:;;;;,�•F-� ------j group chief executive, with former leader general insurance market." ------David Margrett becoming non-executive In August, GRP purchased the renewal -� chairman of GRP's holding company. GRP rights to seven books of business from co-founder Peter Cullum became a non broker Aon, including its Northern Irish, executive director, while Andy Homer, who affinityand micro portfolios. lnsuranceTimes I Top 50 Brokers 2020 I 31 0 Follow us @lnsTimesNews ••• Fitch ::1mas Ratings This year, PIB Group has also snapped up property broker UKinsuranceNET and RA Insurance Brokers, among others. #14 0 In June, the company announced that it PIB is rebranding around 12 of its businesses to 2019: 16 operate under the name of parent firmPIB Chief executive: Brendan McManus Insurance Brokers. This aims to simplify PIB's specialist commercial lines portfolio, Brokerage: £ 1 34m which had grown more complex as a result of the acquisition process. ■ Management The rebrand, therefore, has been PIB Group once again demonstrated designed to create a newly expanded consistent year-on-year growth, improving specialty division forspecialist commercial its brokerage by 17.2% between 2019 and lines, supported by in-house claims 2020, to £134m from flllm. This success handling and a risk management team. 0 BROKERAGE further sees the broker move up the In terms of private equity, PIB Group is in Insurance Times/IMASTop 50 Brokers its fourth year with investor The Carlyle ranking by two places to 14th. Group. McManus is looking ahead, however, This trajectory closely mirrors its statistics and told Insurance Times that the firm"will from 2019's report, where PIB Group also probably look to move to a new investor in grew its brokerage by 17% and moved two the next 18 months to two years". places higher in the rankings, from 18 to 16. The firm's 2019 financialresults, Brendan McManus remains as the published in July, showed that the broker broker's group chief executive, supported has increased its revenue by 15% between by chief financialofficer Ryan Brown. 2018 and 2019, recording a figureof £123.3m. Its gross written premiums for 2017 2018 2019 2020 ■ Strategy 2019 totalled £986m and organic revenue PIB Group's aggressive acquisition approach growth was 8%. client, service and specialist product continues. To date, it has bought more than Brown said: "As we enter our fifthyear, expertise of niche brokers with the scale 30 businesses, five in 2020 alone, including we are starting to demonstrate that we and diversifiedcapabilities of larger its first international purchase, in June, of have carved ourselves a unique position in brokers, offeringa credible and attractive Marx Re, a brokerage based in Germany. the market. One that combines the focus on alternative proposition." #15 � 0 BROKERAGE AA Insurance £5oom�------� Services £40Qmt------< 2019: 15 £30Qmt------< Chief executive: Simon Breakwell £20Qm1------< Brokerage: £126m ■ Management 2016 2017 2018 2019 2020 M Insurance Services saw a year-on-year rise in brokerage rise of 5.9% to £126m last year. where he held similar roles. sought to invest to improve its pricing agility. Ms insurance arm, which includes its M Insurance also has a new managing The launch of an in-house underwriting broker and underwriting business, posted a director, David Coughlan, who joined in capability has allowed the broker to be healthy increase in profit,as well as a rise June this year from RSA, where he ran the more competitive when attempting to win in underwritten policies to 780,000. personal lines division. He has also had new business, a strategy that now sees it Simon Breakwell has been chief stints at Zurich and Aviva. underwriting 52% of its motor policies and executive since 2015, having initially taken 39% of its home policies. over on an interim basis, and Kevin ■ Strategy M Insurance Services' integrated Dangerfield sits alongside him as chief M added Aviva to its motor panel towards model means that its underwriter aims to financial officer,joining at the start of this the end of last year, the firstnew panel drive higher broker volumes that generate year from outside of the insurance industry member for a decade. The broker has also better margins. Ranking O up on 2019 0 no change O down on 2019 * New entry 32 I Top 50 Brokers 2020 I lnsuranceTimes 0 Follow us @lnsTimesNews Read more online at insurancetimes.co.uk ••• Fitch ::1mas Ratings ■ Strategy At the end of last year, BMS launched a 0 new division for private equity, mergers #16 and acquisitions (M&A) and tax insurance. BMS Broking Meanwhile, the broker also appointed a managing director to take control of the Group new business area. Tan Pawar will report 2019: 17 to BMS Global Risks managing director Chief executive: Nick Cook Ian Gormley. Most recently, Pawar was senior Brokerage: £ I I 2 m vice-president at Paragon International Insurance Brokers, where he co-formed the ■ Management M&A insurance division in 2014. Before A successful year saw BMS Broking grow that, he was divisional director, its brokerage by 12.5%, securing it a international M&A and transaction services, 16th position on the Insurance Times/ at Willis. IMAS Top 50 Brokers list, up from the "I am delighted to be joining BMS, a 0 BROKERAGE previous year and smashing through the leading independent global broker backed £100m barrier. by long-term capital, at this exciting time in Employing 450 people around the world the company's development," Pawar said. in 20 offices, the 40-year-old business is led "There is significantneed in M&A by Nick Cook, with Dane Douetil heading insurance for more bespoke and innovative up the group. solutions and BMS has the scale and The broker has also made a series of firepower to deliver this." senior hires as BMS continues its expansion Gormley added: "We have identifieda drive following the completion of a £500m significantgap in the market to provide investment by British Columbia Investment tailored products forcorporate M&A Management Corporation (BCI) and transactions and will be expanding 2016 2017 2018 2019 2020 Preservation Capital Partners (PCP) significantly in this space." 0 BROKERAGE #17 0 _ Granite rn5m �------/__ 2019:21 _ Managing director: Alan Keating [?Om I------#"-----+ Brokerage: £94m ■ Management Liverpool-based Granite climbed four � places to 17th in the £20m Insurance Times/IMAS 2016-� �---2017 2018�-- 2019� --2020� Top 50 Brokers report for2020 after it reported brokerage of £94m. This is a 29% increase on the £73m reported last year, with the broker securing its position as one of the 20 biggest brokers in the UK general insurance market. Granite is led by co-founder and managing director Alan Keating and director and fellow co-founder black taxis, Uber and other large operators Granite's services are marketed through Martin Gowing. in the sector, as well as specialist cover for retail branches, price comparison websites, private motor and light commercial brokers, as well as its own website and a ■ Strategy vehicles. call centre. The company comprises several brands, The group also offers non-standard The MGA says that its specialist team including Acorn Insurance, which home insurance schemes, including of underwriters allows it to compete in distributes specialist motor insurance, providing cover for business use, holiday areas of the market that more traditional catering to drivers of private hire cars, homes and unoccupied premises. insurers decline. * Ranking O up on 2019 0 no change O down on 2019 New entry 34 I Top 50 Brokers 2020 I lnsuranceTimes 0 Read more online at insurancetimes.co.uk ••• Fitch ::1mas Ratings joined Eldon as a non-executive 0 BROKERAGE director earlier that year. #18 0 #19 0 Former ABI director Sir Mark Boleat has been appointed the THB Group Eldon broker's chairman. 2019: 19 Chief executive: Matthew Insurance ■ Strategy Crane Eldon's rebrand as Somerset Services Bridge Group in December 2019 Brokerage: £Om 2019: 39 initially had Boleat serving as £89m 2016 2017 2018 2019 2020 Managing director: Liz Bilney director alongside Alison ■ Management Crighton Stewart, but both left Specialist (re)insurance broking group chief executive since 2009, Brokerage: £88m these positions in March and risk management business and was also president of the this year. THB Group climbed one place in International division of ■ Management Somerset Bridge works with the latest edition of the AmWINS, an independent Brokerage growth of more a panel of insurers, including Insurance Times/IMASTop 50 wholesale distributor of specialty than 13% has helped Arron NIG, Ageas, Aviva, AXA, Zurich Brokers report after growing its insurance, since 2012. Banks-owned Eldon Insurance and Covea. It offers car, van, brokerage by 12% to £89m. Services, now rebranded as bike, home and life insurance. In February, industry veteran ■ Strategy Somerset Bridge, climb 20 Matthew Crane was appointed THB is a specialist international places to 19th on the latest chief executive ofTHB Group, (re)insurance broking and risk edition of the Insurance 0 BROKERAGE succeeding Frank Murphy. management group with 700 Times/IMAS Top 50 Brokers £150m�------� Crane will oversee a global employees globally and more listings, after it made its debut platform representing more than 150 clients, covering every in theTop 50 last year at £100m.______. than $2bn in premium placed, continent. number 39. -· having joined the firm from QBE The group is headquartered in Liz Bilney remains as £50mt------< where he was executive director, London, where it runs one of the chief executive, a position she market management forthe largest Lloyd's broking operations has held since October 2019, £Om.__�-�-�-�____. group. in the specialty market sector. supported by former Brightside 2019 2020 Murphy had held the role of It is part of AmWINS Group. boss Martyn Holman, who executive is Alan Thomas, while formergroup chief executive OBROKERAGE Jason Stockwood is now #20 0 #21 0 £150m�------� Simply vice-chairman. Aston Lark £100m ■ Strategy 2019: 20 --· Business Simply Business cemented new Chief executive: Peter Blanc . £50m -� 2019: 26 partnerships this year, teaming UK chief executive: Alan with DAS UK in July to offer Brokerage: £86m £Om Thomas home emergency, business legal 2018 2019 2020 expenses and landlord legal ■ Management Brokerage: £8 7 m expenses cover, including tenant Aston Lark's brokerage has grown default. In June, it joined forces by 15. 7% in the last year, rising mergers and acquisitions since ■ Management with Equipsme to offerhealth to £86m from £72.6m in 2019. the last edition of theTop 50. Simply Business has had a insurance to small businesses. Despite this boost, the broker fell In the fourth quarter of 2019, sensational year, growing its out of the top 20, losing one the firm bought three brokers brokerage by an impressive place from2019's 20th placed covering Ireland, London and 52.8% to £87m this year from 0 BROKERAGE finish in the Insurance Times/ Manchester. So far this year, £41m in 2019. It climbed inside IMAS Top50 Brokers listing. Aston Lark has added three theTop 20 forthe firsttime to £90m�------� Peter Blanc continues as chief more, including an employee finish20th in the Insurance £80m<------.,____., executive after the management benefits broker, a Lloyd's broker Times/IMAS Top 50 Brokers £?Omt------< buy-out of Aston Scott in 2015. and a regional broker in Exeter. listings. This is six places better £60m<------#----< This was followed by a merger Aston Lark made some big than last year's 26th. £50m1-�iiiiiiiiii-..;;:::��1 with Lark Group in 2017. appointments this year, David Summers remains £40m1---, ------=-----J including former Aviva Ireland £30m ■ group chief executive, a role he 2016 2017 2018 2019 2020 Strategy sales and distribution boss took on role in 2018. UK chief Aston Lark has been busy with Robert Kennedy. lnsuranceTimes I Top 50 Brokers 2020 I 35 0 Follow us @lnsuranceTimes_ ••• Fitch ::1mas Ratings motorcycles, military vehicles, Japanese imports, VW camper 0 BROKERAGE vans and disabled drivers. 0 The broker also offerspolicies 0 Adrian#22 Flux forspecialised home insurance, Bravo#23 Group 2019: 18 including for holiday homes and 2019: 24 Chief executive: unoccupied properties, cover for Chief executive: David Flux Des O'Connor £25m t------< properties with subsidence and ------Brokerage: £85m at risk of flooding, as well as Brokerage: £77 m landlords and customers with ■ Management criminal convictions. ■ Management Adrian Flux dropped back down This year will be Bravo Group's to 22nd place in this year's BROKERAGE last appearance in the Insurance November last year after Insurance Times/IMASTop 50 0 Times/IMASTop 50 Brokers previously leading NIG's Brokers, falling out of the Top £150m------� listings after it was acquired by e-trading strategy. 20 despite a 6.3% increase in Ardonagh alongside Irish broker brokerage to £85m. Arachas fora total of £550m. ■ Strategy The broker was founded in The business has continued Meanwhile, Ethos Broking has 1974 by Adrian Flux, now its steady rise in the rankings, been making mergers and managing director and up from 24 last year with a acquisitions throughout the year chairman, while son David Flux £Om t--�-�-�-�----< 27.6% rise in brokerage. Des as it continues to expand with leads the company. The business 2016 2017 2018 2019 2020 O'Connor continues to lead the investment firepower. It now employs more than 750 people group, which comprises the counts 11 regional hubs and 26 at East Winch Hall, Norfolk. Compass, Broker Network and satellite officesas it pursues its Ethos Broking brands. hub and spoke strategy. ■ Strategy O'Connor leads a team that To mitigate the effectsof Adrian Flux began as a specialist also includes Simon Drew as Brexit, the group said it was motor broker, providing cover chief financial officerand looking at setting up a Malta forkit cars and classic vehicles. managing director of networks captive structure to allow its The business has since and product Jaime Swindle, brokers continued access to expanded to include 4x4s, who joined Bravo Group in the EU market. and specialty broker appointed 0 BROKERAGE Chloe Cox and Alex Atkinson as its new divisional directors for 0 £?Om 0 £60m its London-based professional #24 #25 and executive risk team. CFC £50m Ed Broking 2019: 22 £40m Underwriting Chief executive: Andrew ■ Strategy £30m 2019: 25 Draycott Ed Broking says it is unlike Chief executive: David Walsh smaller brokers because of its £10m 2016 2017 2018 2019 2020 Brokerage: £66m international reach and Brokerage: £?Om insurance intelligence, but is ■ Management also different to larger brokers ■ Management executive, founded the business Ed Broking has fallen three because each line of business Cyber expert CFC Underwriting in the late 1990s, and works places in the Insurance Times/ operates without geographical has progressed one place to 24 alongside chief financial officer !MASTop 50 Brokers listings boundaries. in this year's Insurance Times/ Michael Grist, chief innovation with brokerage down by 3.5%. !MASTop 50 Brokers after it a officer Graeme Newman and Andrew Draycott has been 22.1% increase in brokerage, chief underwriting officer chief executive since December 0 BROKERAGE moving to £70.4m this year Andy Holmes. 2018 after Ed Broking was £300m------� from £54.9m in 2019. bought out by a subsidiary of This year-on-year growth ■ Strategy global fintechfirm BGC Partners. follows the broker increasing its CFC has dabbled in mergers Draycott replaced Steve Hearn, brokerage by more than 40% and acquisitions, buying who moved up to head up BGC's between 2018 and 2019 and Texas-based incident response insurance division, which shooting up the rankings from provider Solis Security in includes Top 50 rival Besso. £0mt--�-�-�-�� 35 to 25 in 2019. October last year and insurtech And in February 2020, the 2016 2017 2018 2019 2020 David Walsh, CFC's chief Threatinformer this January. global reinsurance, wholesale Ranking O up on 2019 0 no change O down on 2019 * New entry 36 I Top 50 Brokers 2020 I lnsuranceTimes 0 Follow us @lnsuranceTimes_ ••• Fitch ::1mas Ratings In July, First Central 0 BROKERAGE partnered with the digital Everywoman in Insurance 0 £75m�------� 0 Forum, saying it shared the Markerstudy#26 ·-·- First#27 Central same passion for diversity 2019: 23 £50m1------, 2019: 28 and inclusion. Chief executive: Kevin Spencer Group chief executive: Specialising in private motor, £25m 1------< Michael Lee First Central comprises a Brokerage: £62m Gibraltar-based underwriter and £0m��-�-�-�- Brokerage: Guernsey-based reinsurer, both 2076 2017 2018 2019 2020 £55m ■ Management trading under the Skyfire brand. For a second year in a row, ■ Management The company has developed its Markerstudy reported a fallin Markerstudy awaits the green Up one place this year, First own software that it says gives brokerage - this year by 4.3% light fromthe authorities for its Central grew its brokerage by it an edge over competitors - which has seen it drop three £185m acquisition of CIS 2.8% over the previous 12 relying on legacy systems. places in the rankings and General Insurance, the Co-op's months to £54.9m. The group employs more outside of the Top 25. underwriting division. Former managing director of than 700 people in West Founder and major The business has made 478 Hastings Insurance Services Sussex, Manchester, Guernsey shareholder Kevin Spencer staffredundant, having division Michael Lee joined the and Gibraltar. continues to head the group, previously furloughed 1,000 business in March 2019 as with Gary Humphreys in charge staffand requested others to group chief executive, replacing of the underwriting division. take a 20% wage cut as the Simon Walker, who had been in 0 BROKERAGE Amanda Fox joined the firm economic impact of the Covid-19 the job since January 2018. £60m in February 2020 and promoted pandemic took its toll. Its board First Central celebrated 10 £50m ·- --· to head of broker management of directors also saw their years of trading in 2019. -...r- and product governance in May. salaries cut in half. £40m £30m Clive Fulcher became assistant "Sadly, Markerstudy has not ■ Strategy head of broker management. been alone in having to consider In February, First Central came £20m all available options and take to the end of its three-year £10m £Om ■ Strategy immediate action," it said at partnership with Guernsey-born 2076 2017 2078 2079 2020 As at time of writing, the time. racing driver Sebastian Priaulx. officerSam Hovey, who joined 0 BROKERAGE the business in February 2014 and is also chief operating 0 £60m�------c--t officerof Besso Ltd. #28United £50mf------c����:__j #29Besso ■ Strategy Insurance £30mI------, Insurance Besso operates globally through £20m 2019: 29 nine divisions: Aviation, Energy, Brokers £70m Chief executives: Robert Marine, International, Property, 2019: 27 £Om 2016 2017 2018 2019 2020 Dowman and Russell Nichols Casualty, Reinsurance, Besso UK, UK chief executive: Shaun Besso Re and Professional and Barrington Brokerage: £52m Financial Risks. Besso also Keith Gribben is chief ■ provides risk transfer services for Brokerage: £55m financial officer, CraigFisher Management reinsurance and capital markets leads the aviation business and Besso has cemented its position at through subsidiary Optex. ■ Management Stephen Palles-Clark is executive 29 in the Insurance Times/IMAS United Insurance Brokers (UIB) director of the commercial and Top 50 Brokers with brokerage has slipped one place from 27 in corporate division. growing by just 0. 7% to £52m. 0 BROKERAGE 2019. This is despite a 1.4% Joint chief executives Robert £60m �------� improvement in its brokerage, up ■ Strategy Dowman and Russell Nichols from£54.2m to just under £55m. UIB, established in 1987, has a remain in charge of the business £50m t------:_,,,,."""'-=--j £40m 1------'------, Bassem Kabban remains long list of specialisms, including after the acquisition of the group "'--- group chief executive and aviation, casualty, construction, by US financial services group £30m e-0 ------1 chairman - his family owns the cyber, energy and power, marine, BGC Partners, which also owns £20m >------< majority of the Lloyd's broker corporate and commercial, Top 50 rival Ed Broking, in 2017. £10m t------< £Om - while Shaun Barrington heads political violence, property, space Dowman and Nichols are 2076 2017 2078 2019 2020 up the group's UK operations. and treaty. supported by chief financial * Ranking O up on 2019 0 no change O down on 2019 New entry 38 I Top 50 Brokers 2020 I lnsuranceTimes 0 Read more online at insurancetimes.co.uk ••• Fitch ::1mas Ratings ■ Strategy 0 BROKERAGE In July 2020, SRG agreed the 0 0 acquisition of Insolvency Risks £60m Service (IRS), a division of MS Nexus#30 £50m Specialist#31 Amlin, subject to regulatory £40m approval. Underwriting £30m Risk Group IRS is a player within the UK 2019: 35 £20m 2019:36 insolvency market and the move Group chief executive: £10m Chief executive: signals its return to the Colin Thompson £Om Warren Downey insurance broking world after 2017 2018 2019 2020 several years as a division of Brokerage: £ 4 7 m Brokerage: £46m MS Amlin. ■ Strategy As part of the acquisition, MS ■ Management In August, Nexus Group unified ■ Management Amlin will provide SRG with Nexus Underwriting climbed its trade credit broking purchases Moving up five places from ongoing capacity forparticular fiveplaces to 30th after growing under the Xenia brand. 36 in last year's Insurance risk exposures. its brokerage to £47m, up The move combines Credit Times/IMAS Top 50 Brokers, almost 16% on last year's figure. Risk Solutions, bought in 2017, Specialist Risk Group (SRG) has Colin Thompson, who set up with Credit and Business climbed to 31 on the list after the business more than a decade Finance, bought last year. They growing its brokerage by 17.3% ago, is group chief executive will be integrated into Xenia to £46m. after moving back to the role in Broking Group, the independent The broking group, which 0 BROKERAGE 2018, replacing Tim Coles who broking arm of French-backed includes the now-rebranded £60m became chief operating officer underwriter Nexus, which has its Miles Smith, bagged JLT £50m (COO). UK base in Hertfordshire. veteran Warren Downey as its £40m Since then, Coles has taken Coles said: "The businesses new chief executive in on the role of chief executive of that together constitute the new September 2019. £30m Xenia Broking Group, with Tim Xenia possess exceptional talent Downey previously filled £20m Brangwyn, managing director of and deep expertise that enable the role of chief executive for £10m £Om Millstream Underwriting, us to raise the bar on delivery of JLT's global private client 2017 2018 2019 2020 promoted to the role of COO. exceptional solutions." business. John Radford remains chief 0 BROKERAGE executive of the firmhe founded in 1995, with the firm now also £60m ------� 0 having a presence across the UK. Crispin#32 Speers £50m >------< One#33 Call £40m I------.,,,:,,=----, 2019: 32 ■ Strategy £30m I-----�-'------, = Insurance Managing director: Crispin 0 The broker offers a range of £20m >-----' ---=------1 Speers policies, including home cover, £10m 1------1 Services van, commercial, short-term £Om Brokerage: £ 46m 2016 2017 2018 2019 2020 2019:31 insurance, learner driver ■ Chief executive: John Radford insurance and travel cover. Management ■ In January 2018, One Call Crispin Speers is managing Strategy Brokerage: £43m broke the 500,000 customer director and a founding member Crispin Speers has maintained barrier. of this eponymous Lloyd's its position at 32 in the Insurance ■ Management (re)insurance broker. Times/IMAS Top 50 Brokers One Call fell two places to 33 on Speers set up the business despite a 7.5% rise in brokerage, the Insurance Times/IMAS Top 50 alongside David Stirling, who is to £45.8m from 2019's £42.4m. Brokers listing, with last year's 0 BROKERAGE now in charge of production The broker reported negative brokerage figure of £43m having £60m------� and broking. EBITDA growth of 9 .1%, an to be used due to updated £50m>------< ""-- Meanwhile, Ken Davidson EBITDA margin of 25.6% and figures not being available at the £40m1------# -=-a acts as the firm'snon-executive EBITDA of £11. 7m. time the analysis was conducted. £30m>------< chairman, Raj Rupal heads up Its areas of specialism include Last year, the broker reported the finance function and binding authorities, special risks, an impressive 89% increase in £10m>------< Andrew Rutty deals with aviation, reinsurance, travel and brokerage after it changed its £Om�-�-�-�-� operations and the broker's programmes, accident and accounting practices, resulting 2016 2017 2018 2019 2020 day-to-day management. health and employee benefits. in reduced sales costs. lnsuranceTimes I Top 50 Brokers 2020 I 39 0 Read more online at insurancetimes.co.uk ••• Fitch ::1mas Ratings ■ Strategy 0 BROKERAGE The broker sells specialist motor 0 0 insurance across the UK, as well £60m as scheme insurance for van and Berry#34 Palmer £50m MCE#35 car drivers, couriers and fast £40m food delivery drivers. & Lyle £30m Insurance In March this year, the broker 2019:37 £20m 2019:34 announced a 0% gender pay gap Managing directors: James £10m Chief executive: Julian at its firm for its third year Esdaile and Sian Aspinall £Om Edwards running. 2016 2017 2018 2019 2020 In 2019 it teamed up with Brokerage: £ 4 2 m Brokerage: £4 1 m insurtech Inzura to launch a ■ Strategy new app to automate the ■ Management BPL continues to have its ■ Management customer onboarding process. Berry Palmer & Lyle (BPL) headquarters in London, where MCE drops one place to 35 in climbed three places in this the company was founded the Insurance Times/IMAS Top year's Insurance Times/IMAS in 1983. 50 Brokers after it grew its Top 50 Brokers listings to 34 The broker opened a Paris brokerage by 2.4% to £41.3m, after reporting brokerage of office in 2001, led by Paul up from £40.3m last year. £41.5m, up 13.2% on last Torrington, who has more than Established in 1975, the year's £36m. 35 years' experience in the CPRl independently owned 0 BROKERAGE Sian Aspinall and James market and has worked with motorcycle insurance provider £60m------1 Esdaile remain in their roles as clients throughout Europe, operates from offices in Rushden £50m1------1 managing directors in charge of particularly in France, Germany in Northamptonshire. £40m --•-• the business, and now oversee and Italy. Julian Edwards has been ·=--·--� £30m1------1 the largest specialist broking The broker has since opened chief executive of MCE £20m 1------l team in the credit and political offices in Singapore, Hong Insurance since 1995, after risk insurance (CPRI) market, Kong, New York and Geneva. taking over from his father £10m1------1 £Om��-�-�-�� with 100 staffacross its Michael, who set up the 2016 2017 2018 2019 2020 global offices. company in 1975. Mccafferty said he was 0 BROKERAGE expecting this year to be the 0 0 start of a "transformative" £60m decade, with technological Animal#36 £50m Brightside#37 advancements the driving force £40m 2019:31 behind this change. Friends £30m Managing director: Brendan The broker is investing 2019:38 £20m McCafferty heavily in digital capabilities Managing director: Elaine £10m to help it stay at the fore of Fairfax £Om Brokerage: £36m this change. 2019 2020 ■ It launched managing Brokerage: £38m Management general agent Kitsune in year from £32.3m in 2019. Another 15% reduction in January 2019. ■ Management brokerage to £36m has seen Animal Friends, a pet insurer ■ Strategy Brightside fall further down that supports welfare charities, Animal Friends provides cover the Insurance Times/IMAS Top has consolidated its initial entry for more than 800,000 pets and 50 Brokers listings to 37 after into the Insurance Times/IMAS has donated around £4m to finishing in 31st position Top 50 Brokers rankings last year animal welfare charities since last year with brokerage 0 BROKERAGE by moving up twoplaces from 38 its inception. of £41.3m. to 36. The business was set up in "Animal Friends has been Brendan Mccafferty remains £700m------� 1998 by founder and managing built from my genuine desire to as chief executive, with Mark £80m t------< director Elaine Fairfax. It offers use business to help animal Cliffalso continuing in his role £60m cat, dog and horse insurance, charities," Fairfax said. "Animal as chairman. including rider cover. Friends has bred a fantastic The broker has seen a 16% team spirit and a unique ■ Strategy improvement in its brokerage workplace atmosphere that Even before the Covid-19 figure, rising to £38.4m this every visitor remarks on." pandemic changed the world, Ranking O up on 2019 0 no change O down on 2019 * New entry lnsuranceTimes I Top 50 Brokers 2020 I 41 0 Read more online at insurancetimes.co.uk ••• Fitch ::1mas Ratings after a £28m investment by 0 BROKERAGE Lloyd Bank's private equity arm #38 0 #39 0 LDC in June 2018. Bollington Right Choice ■ Strategy Right Choice broke into the Top Wilson Insurance 50 in 2018. It now employs 2019: 43 more than 350 people, Chief executive: Paul Moors Brokers providing home and 2018 2019 2020 2019: 44 commercial insurance, as well Brokerage: £36m Managing director: Mike as specialist motor policies such Joseph as taxi insurance in addition to ■ Management trail in earnest this year, its core motor book. Bollington continues its rise up completing a steady stream of Brokerage: £34m the Insurance Times/IMAS Top 50 purchases, most recently in Brokers rankings, jumping from August, taking its total number ■ Management 43 last year to position 38 this of purchases in 2020 to four. Climbing fiveplaces in the year, thanks to a 34.2% rise in Watson Laurie was the Insurance Times/IMAS Top 50 brokerage. broker's most recent Brokers to 39 is Essex-based The private-equity backed acquisition, following deals for motor insurance specialist Right business is led by chief executive West Midlands-based Choice Insurance Brokers. 0 BROKERAGE Paul Moors. commercial insurance broker Right Choice grew its CLA Risk Solutions, as well as brokerage by 21.3% to £33.9m ■ Strategy Ashgrove Insurance Services this year - up from £26. 7m With private equity house and Prophet Trade Credit. last year. Inflexion'smoney and advice Mike Joseph remains as behind it, as well as the managing director of the completion of the integration business he founded back in with Wilson Insurance, 2008, supported by Ian Owens, 2018 2019 2020 Bollington began its acquisition who was appointed chairman Cooper and fellow buyout 0 BROKERAGE partners and directors James #40 0 £60m #41 0 Stuart and Nigel Coppen. £50m ■ iG04 £40m Vantage Strategy 2019: 41 2019:40 The business started out as an £30m . . Chief executive: ·= Chief executive: Matt Munro £20m Jacquie affinity scheme for the Caravan Boast Club back in 1999 and has since £10m Brokerage: grown to offerother products, £32m £Om 2018 2019 2020 Brokerage: £32m including cover for motorhomes ■ Management and classic cars via its Club iGO4 is continuing its upwards ■ Management Care, Shield Total and Crusader trajectory after it first entered its brokerage by 1% between Vantage fell one place to 41 on retail brands. the Insurance Times/IMAS Top 2019 and 2020, rising to £32m the Insurance Times/IMAS Top The broker also offers 50 Brokers in 2018 at number from £31.5m. It has negative 50 Brokers listing, with last professional indemnity and 42. The broker inched upwards EBITDA growth of 1.5%, an year's brokerage figure of £32m business liability cover. one spot in 2019 and has again EBITDA margin of 12% and an having to be used due to progressed a further place this EBITDA figureof £3.8m. updated figures not being year, to 40. The broker has provided available at the time the 0 BROKERAGE The business is led by chief digital platform capabilities for analysis was conducted. £60m�------� executive Matt Munro, who a number of big-name insurers, In January 2020, Jacquie £50m >------< founded iGO4 in 2007 - it such as Hastings Direct, RAC Boast was appointed as group £40m >------< currently has 322 staff. and Direct Line Group. chief executive, replacing the £30m -.6._-•-• o,:•=,,.....--=:•�--j • ■ retiring John Collyear, who had £20m >------< Strategy been at the business for more £10m >------< iGO4, which focuseson car, van than two decades. and home insurance using a Boast is supported in her role telematics model, has improved by managing director Tom Ranking O up on 2019 0 no change O down on 2019 * New entry lnsuranceTimes I Top 50 Brokers 2020 I 43 0 Follow us @lnsuranceTimes_ ••• Fitch ::1mas Ratings ■ Strategy 0 BROKERAGE The group now employs more than 360 staff at 10 0 £40m 0 #42 #43 offices across Norfolk, Clear £30m Alan Boswell Suffolk, Lincolnshire and -· ---· Cambridgeshire. Insurance £20m Group Commercial insurance has 2019: 48 £10m 2019: 47 been at the heart of the Chief executive: Howard Group managing director: specialist schemes broker since £Om Lickens 2018 2019 2020 Chris Gibbs it was set up more than 37 years ago, and the group also Brokerage: £26m Brokerage: £25m incorporates financial planning acquisitions, including and risk management arms. ■ Management Warwickshire-based Morrison ■ Management In recent weeks, the city Clear Group achieved a 13.9% Insurance Solutions last autumn After two years at number 47, council received applications to rise in brokerage over last year, and rights of light broker Light the Alan Boswell Group has convert the Alan Boswell office helping it to jump to position 42 & Legal Indemnity Solutions in climbed to number 43 in the on Prince of Wales Road into in the Insurance Times/IMAS Top February this year. Insurance Times/IMASTop 50 25 flats. 50 Brokers listing, up from 48 The company has doubled in Brokers, after growing its last year. size since 2016, following a brokerage by 6.4% to £25.lm. Howard Lickens remains as period of organic, as well as Alan Boswell remains as 0 BROKERAGE chief executive, a role he took acquisitive growth. chairman of the group he set up on in 2001 after nearly six years in Norwich in 1982, supported at Stuart Alexander, where he by Chris Gibbs who still holds was most recently group the role of group managing operations director. director. Gibbs started at the broker as ■ Strategy office manager in 1993 when The private equity-backed the company had just 25 2017 2018 2019 2020 broker has made several employees. ■ Strategy 0 BROKERAGE Complete Cover, which was 0 0 known as A&A until it was rebranded in 2016, was Barbon#44 Complete#45 launched in 1968 as a two-man operation working out of a shed Insurance Cover in Twickenham. 2019:49 2019: 42 It now specialises in non Chief executive: Martin Totty Chief executive: Shaun standard cover for car, van, Cooper home and taxi insurance. Brokerage: £25m In 2010, the broker set up Brokerage: £25m Gibraltar-based insurer ■ Management Mulsanne to offer insurance Barbon Insurance has had a and commercial director Andy ■ Management for the high premium sector successful year, jumping up the Glynne. Meanwhile, Alexander Complete Cover slipped of the UK motor insurance Insurance Times/IMAS Top 50 Pietruska remains as the three places to 45 in this market. Brokers rankings by five places, company's chairman. year's Insurance Times/IMAS moving from 49 in 2019 to 44 Top 50 Brokers ranking after its this year. ■ Strategy brokerage fell by more than 0 BROKERAGE The broker is still led by Barbon Insurance has improved 18% to £25m. chief executive Martin Totty, its brokerage by 10% between Shaun Hooper remains as who was previously in charge at 2019 and 2020, reaching £25m group chief executive of the Cigna UK, and has held the top this year compared with broker, having taken on the position at Barbon since 2013, £22.6m in 2019. role in 2017. now leading a total of around It has also reported a Hooper was previously 368 staff. 74.2% EBITDA growth in the the head of Cooper Gay, Totty is supported by group past year and holds net current prior to its 2016 rebranding as 2016 2017 2018 2019 2020 finance director Phil Screeton assets* of £11.8m. Ed Broking. Ranking O up on 2019 0 no change O down on 2019 New entry 44 I Top 50 Brokers 2020 I lnsuranceTimes 0 Read more online at insurancetimes.co.uk ••• Fitch ::1mas Ratings was set up in Newcastle in 1961. In August this year it posted an increase in turnover and a BROKERAGE CHANGE 0 * #47 return to profit for the year Kaufman#46 Lycetts ended 31 December 2019. 2019: 50 Pre-tax profit was £1.29m in Group Chief executive: Charles 2019. This was in contrast to NEW ENTRANT Foster 2018's pre-tax loss of £224,878. Chairman, president and chief Turnover rose to £22.7m in executive: Alan Kaufman Brokerage: £23m 2019, compared with £21.6m ■ in 2018. Brokerage: £23m 0 Management Lycetts offers specialist After coming in at number SO for rural, equine and private client ■ Management Kaufman and has a large three years running, Lycetts has insurance, as well as commercial A newcomer to the listing, presence in North America. jumped to number 47 in the cover across specialist market Kaufman Group saw its Insurance Times/IMAS Top 50 sectors including construction, brokerage rise 10.9% to £23m ■ Strategy Brokers rankings after growing education, tree surgery as it took 46th place in the In London, the group is behind its brokerage by 4.4% to £22.Sm. and forestry. Insurance Times/IMASTop 50 a number of different brands, Charles Foster, who joined Brokers in its debut appearance. including Burns & Wilcox UK, the business in 1991, remains Now led by chairman, ChesterfieldGroup London, chief executive, a position he 0 BROKERAGE president and chief executive Lochain Patrick, Cranbrook has held since November 2017. Alan Kaufman, the group was Underwriting and Node Foster replaced Angus Keate, £40m�------� founded in 1969 by Herbert International. who became deputy chairman. Chairman is Mark Hews, chief executive of Ecclesiastical, which owns Lycetts. £10m>------< 0 BROKERAGE ■ Strategy £ m - - - O L�2 0-1 7 � �02 8�1 �20��1 9 �02 �02 � Farm insurance broker Lycetts #48 0 £40m Be Wiser £30m . 2019: 45 Chief executive: Sharon £20m Beckett £1 Dm £Om 0#50 Brokerage: £22m 201 6 201 7 20 18 201 9 2020 * Seventeen#49 Countrywide ■ Management In January 2020, Mark ■ Strategy Group Legal Bower-Dyke handed the chief Be Wiser managed to grow its 2019:46 NEW ENTRANT executive reins over to the brokerage by 0.8% to £22.lm Chief executive: Paul Anscombe Chief executive: Steven Clarke broker's then managing after reporting a figure of director Sharon Beckett as part £21.9m in 2019. Brokerage: £21 m Brokerage: £1 Sm of a senior leadership reshuffle. The broker has a 7.1% Bower-Dyke, who EBITDA margin. ■ Management ■ Management established Be Wiser in 2007, The firm'sEBITDA as Seventeen Group has fallen After stints at Norwich Union remains the firm's executive reported in this year's Top SO three places to 49th in the and Prudential, Steven Clarke chairman. listing is £1.6m. Insurance Times/IMAS Top 50 established Countrywide Legal The management has been The business employs 333 Brokers, despite a 14.2% in 1994, alongside director investing to help the broker staff. increase in brokerage to £21m. Colin English. The business now flourish in the ever-changing In April 2020, Be Wiser Paul Anscombe is chief employs around 88 staff. and highly competitive personal agreed a deal with insurtech executive, having been managing lines vehicle market. Worry+ Peace to use its director or director of several ■ Strategy The company has slipped reviews-led insurance platform. London brokers since 1987. Brokerage growth of 11.2%, to a total of three places since Following this, in May, the £18.2m in 2020 from £16.2m last year's Insurance Times/ broker signed a new ■ Strategy last year, saw new entry !MASTop 50 Brokers listing and partnership agreement with Founded in 1982, London-based Countrywide Legal break into has dropped a total of nine Quotezone.co.uk to join the Seventeen Group has become a the Insurance Times/IMAS Top places since its 2018 ranking price comparison site's van and multi-disciplined insurance and 50 Brokers rankings for the first of 39. home insurance panels. risk management organisation. time this year. lnsuranceTimes I Top 50 Brokers 2020 I 45 0 Follow us @lnsuranceTimes_ ••• Fitch ::1mas Ratings • All the financial data from the UK's Vital statistics Top 50 Brokers 2020 2019 Company Current Brokerage Brokerage Costs Investment EBITDA EBITDA EBITDA Net Total year change income net growth margin current debt Figures in £000 assets (1) Marsh1 2· 41 Dec19 £1,171,401 -19.3% n/a n/a n/a n/a n/a n/a n/a 2 (3) WillisI1I Dec19 £1,101,239 1.6% n/a n/a n/a n/a n/a £426,311 3 (2) Aon Dec19 £899,037 9.6% £749,882 £24,268 £149,155 -1.5% 16.6% £655,310 4 (7) HyperionIns Group 12. 41 May20 £783,364 35.3% £692,445 £(81,552) £206,274 35.2% 26.3% £206,054 £1,127,556 5 (6) ArthurJ Gallagher Dec19 £734,719 10.9% n/a n/a n/a n/a n/a n/a n/a International1 1 1 6 (4) BGL Group Jun 19 £714,400 8.8% £554,300 £(8,900) £189,300 10.6% 26.5% £(85,900) £166,300 7 (5) Ardonagh Group 12·41 Dec19 £668,500 0.5% £482,800 £(111,611) £185,700 23.6% 27.8% £35,745 £1,178,943 8 (8) Hastings Insurance Dec19 £330,300 -1.5% £253,000 £1,000 £94,000 -18.2% 28.5% £56,700 Services 9 (9) Lockton1 41 Apr19 £324,777 0.0% £311,808 £2,182 £52,175 0.0% 16.1% £22,162 10 (10) Saga Services Jan 20 £236,800 -6.4% £130,900 £26 £90,200 -14.7% 38.1% £(698,000) £690,300 11 (11) A-Plan Group1 2· 41 Feb 20 £178,537 5.5% £133,202 £149 £45,335 12.3% 25.4% £67,569 £13,207 12 (13) Tysers / lntegroI4I Dec18 £151,704 0.0% £103,221 £48,483 0.0% 32.0% £71,770 £25,850 13 (14) Global RiskPartners Jun-20 £150,000 11.1% n/a n/a n/a n/a n/a £40,887 £87,972 (2,4) 14 (16) PIB Group1 2· 41 Dec19 £134,013 17.2% n/a n/a n/a n/a n/a £20,966 £87,547 15 (15) AA Insurance Jan 20 £126,000 5.9% n/a n/a £51,000 -17.7% 40.5% n/a n/a Services 16 (17) BMS Broking Group Dec19 £112,214 12.5% £91,485 £1,796 £30,952 9.6% 27.6% £25,130 £198,233 17 (21) Granite/Acorn May20 £94,144 29.1% £50,942 £43,202 26.5% 45.9% £19,426 £314,246 Insurance 18 (19) THBGroup Dec19 £89,228 12.0% £73,139 £21,995 7.7% 24.7% £27,637 19 (39) Eldon Insurance Dec18 £87,924 13.3% £81,399 £16 £5,583 136.9% 6.3% £9,980 Services 20 (26) Simply Business Dec19 £86,869 23.1% £85,881 £(337) £4,776 -34.1% 5.5% £27,268 21 (20) Aston Lark Group1 2·41 Dec19 £86,083 15.7% £57,229 £149 £28,854 26.4% 33.5% n/a n/a 22 (18) Adrian Flux 141 Sep 19 £85,000 6.3% n/a n/a n/a n/a n/a n/a n/a 0 Read more online at insurancetimes.co.uk ••• Fitch ::1mas Ratings 1 Figures extracted from US SEC Form 1 OK for UK business ' Management provided information 2 5 Annualised figures to reflectm aterial acquisitions in current financial year Annualised for changed year end 3 6 Annualised figures to reflect material changes in current financial year Excludes non-general insurance business Total Sharehold- Debt to Highest paid Total directors' Employee Employee Average Average Headcount Turnover liabilities ers' funds EBITDA director emoluments Numbers Cost employee employee increase per cost cost change employee n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a £1,226,311 £957,865 n/a £3,233 £8,757 3,244 £363,012 £112 8434.0% 0.0% £339.5 £2,856,902 £1,546,283 0.0% £1,645 £5,565 3,243 £466,397 £144 3.1% 2.8% £277.2 £2,272,132 £(284,939) 546.6% £1,682 £4,247 4,996 £436,919 £87 18.8% 15.3% £156.8 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a £737,600 £(23,700) 87.8% £700 £2,500 2,852 £134,300 £47 47.4% -22.6% £250.5 £1,782,860 £97,377 634.9% £2,500 £3,782 6,222 £320,879 £52 5.2% 5.1% £107.4 £390,200 £177,500 0.0% £300 £800 2,929 £93,700 £32 1.7% 3.7% £112.8 £422,272 £15,013 0.0% n/a n/a 2,664 £219,219 £82 0.0% 0.0% £121.9 £1,506,600 £588,200 765.3% n/a n/a 1,766 n/a n/a n/a -7.6% £134.1 £123,200 £98,393 n/a n/a n/a 2,179 £73,829 £34 150.6% -2.7% £81.9 £197,127 £71,801 53.3% £1,226 £3,526 802 £82,071 £102 0.0% 0.0% £189.2 £398,764 £(21,103) n/a n/a n/a n/a n/a n/a n/a n/a n/a £181,001 £116,758 n/a £348 £666 1,400 n/a n/a n/a 13.6% £95.7 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a £230,168 £326,111 640.5% £1,106 £5,446 440 £65,552 £149 3.3% 12.8% £255.0 £427,018 £(289,671) 727.4% £269 £534 990 £27,178 £27 4.0% 22.2% £95.1 £132,652 £60,168 0.0% n/a n/a 544 £50,836 £93 -1.4% 16.0% £164.0 £28,262 £9,594 n/a £321 £1,362 483 £15,554 £32 2.9% 9.8% £182.0 £30,391 £34,716 0.0% £854 £933 591 £39,181 £66 11.4% 20.1% £147.0 n/a n/a n/a n/a n/a 902 £44,682 £50 -0.3% 16.7% £95.4 n/a n/a n/a n/a n/a 1,400 n/a n/a n/a 16.7% £60.7 DATA SOURCE: !MAS-insight 0 Follow us @lnsuranceTimes_ ••• Fitch ::1mas Ratings 2020 2019 Company Current Brokerage Brokerage Costs Investment EBITDA EBITDA EBITDA Net Total year change income net growth margin current debt Figures in £000 assets 23 (24) Bravo Group 12· 41 Dec 19 £77,200 27.6% n/a n/a £22,100 47.3% 28.6% £2,000 £168,000 24 (25) CFC Underwriting Sep 19 £70,428 22.1% £63,530 £(12,763) £27,319 54.8% 38.8% £17,528 £100,301 25 (22) Ed Broking Dec 18 £66,392 -3.5% £77,875 £(4,147) £(11,483) 2104.7% -17.3% £23,651 £1,525 26 (23) Markerstudy 161 Dec 18 £61,515 -4.3% £59,628 £(1,503) £3,215 -35.4% 5.2% £131,899 £134,189 27 (28) First Central Dec 19 £54,989 2.8% £46,046 £13 £8,943 -9.6% 16.3% £14,662 28 (27) United Insurance Dec 19 £54,954 1.4% £48,989 £1,142 £8,173 -22.2% 14.9% £40,441 Brokers 29 (29) Besso Insurance Dec18 £51,708 0.7% £43,169 £(218) £10,977 53.6% 21.2% £6,423 £6,480 Group 30 (35) Nexus Underwritingl 2Al Dec 19 £46,613 15.9% £32,108 £14,505 8,3% 31.1% £16,110 £37,575 31 (36) Specialist Risk 141 May 20 £45,850 17.3% £30,350 £15,500 54,3% 33.8% n/a £31,000 32 (32) Crispin Speers 141 Mar 20 £45,846 7.5% £34,552 £93 £11,742 -9,1% 25.6% £22,630 n/a 33 (31) One Call Insurance Dec 18 £43,270 -0.4% £30,258 £142 £13,072 -95,2% 30.2% £27,936 Services 151 34 (37) Berry Palmer & Lyle Mar 19 £41,543 13.2% £27,191 £59 £14,708 28.0% 35.4% £21,312 35 (34) MCE Insurance 141 May 20 £41,309 2.4% £30,962 £10,347 7.4% 25.0% £10,036 36 (38) Animal Friends Dec 19 £38,416 16.0% £27,565 £33 £11,633 -9.1% 30.3% n/a 37 (33) Brightside Dec-18 £36,059 -14.5% £46,295 £(82) £1,255 -132.7% 3.5% £(5,839) £18,905 38 (43) Bollington Wilson 14J Dec 19 £35,862 34.2% £27,084 £8,778 6.4% 24.5% £5,735 £71,477 39 (44) Right Choice Ins 141 May 20 £33,943 21.3% £23,455 £11,134 34.8% 32.8% £1,596 £87,384 40 (41) iG04I4l Jun 20 £31,810 1.0% £31,222 £3,825 -1.5% 12.0% £(689) £7,916 41 (40) Vantage Insurance 121 Dec 18 £31,763 0.0% £26,034 £21 £6,290 0,0% 19.8% £645 £1,750 42 (48) Clear Insurance 141 Oct 19 £26,417 13.9% £21,874 £93 £4,779 -2.6% 18.1% £(17,290) £19,804 43 (47) Alan Boswell Group Mar 20 £25,141 6.4% £22,100 £269 £4,952 1.0% 19.7% £3,126 £2,609 (2,4) 44 (49) Barban Insurance Dec 19 £25,094 10.0% £22,805 £78 £8,547 74.2% 34.1% £11,807 45 (42) Complete Cover Dec 18 £24,573 -18.1 % £25,468 £458 £(657) -213.3% -2.7% £2,337 46 (N/A) Kaufman Group Dec 18 £22,635 10.9% £17,040 £202 £8,123 22.2% 35.9% £6,364 47 (50) Lycetts Dec 19 £22,557 4.4% £21,315 £(72) £1,797 123.7% 8.0% £8,405 48 (45) Be Wiser 14I May 20 £22,103 0.8% £21,077 £6,896 £1,569 -1146.0% 7.1% £2,614 49 (46) Seventeen Group 12· 41 Dec 19 £21,038 14.2% £18,350 £32 £2,720 17.8% 12.9% £(1,290) £9,500 50 (N/A) Countrywide Legal Dec 18 £18,245 11.2% £17,716 £18 £658 22.2% 3.6% £6,052 0 Read more online at insurancetimes.co.uk 1 Figures extracted from US SEC Form 1 OK for UK business 'Management provided information 2 5 Annualised figures to reflect material acquisitions in current financial year Annualised for changed year end 3 6 Annualised figures to reflect material changes in current financial year Excludes non-general insurance business Total Sharehold- Debt to Highest paid Total directors' Employee Employee Average Average Headcount Turnover liabilities ers' funds EBITDA director emoluments Numbers Cost employee employee increase per cost cost change employee £264,000 £(33,000) 760.2% n/a n/a 810 n/a n/a n/a 22.7% £95.3 £205,586 £119,620 367.1% £610 £1,071 327 £30,556 £93 -2.3% 17.2% £215.4 £122,413 £26,721 n/a £988 £2,266 493 £20,236 £41 -13.7% 0.4% £134.7 £402,297 £5,050 4173.6% £1,317 £3,419 1,808 £50,961 £28 -9.3% -0.7% £34.0 £156,056 £20,694 0.0% £467 £582 446 £15,781 £35 -6.4% -27.1% £123.3 £14,881 £41,398 n/a £315 £1,763 604 £34,343 £57 -2.2% 8.6% £91.0 £83,525 £15,959 59.0% £366 £569 260 £26,120 £100 -8.3% 6.6% £198.9 £69,916 £24,002 259.1% £557 £1,314 234 £20,792 £89 -0.8% 22.5% £199.2 n/a n/a 200.0% n/a n/a n/a n/a n/a n/a n/a n/a n/a £37,618 n/a n/a n/a n/a n/a n/a n/a n/a n/a £24,112 £28,096 n/a £167 £831 436 £10,542 £24 -96.3% -2.7% £99.2 £32,131 £22,040 0.0% £807 £6,008 97 £18,571 £191 -16.4% 12.8% £428.3 £41,027 £13,279 n/a £350 £1,002 222 £8,200 £37 39.6% -14.9% £186.1 £11,891 £5,299 0.0% n/a n/a 329 n/a n/a n/a 6.8% £116.8 £39,415 £46,311 1506.4% £461 £1,950 505 £15,780 £31 7.2% -16.0% £71.4 £73,029 £(16,517) 814.3% £356 £1,929 362 £13,168 £36 11.1% 5.2% £99.1 £105,233 £10,444 784.8% £192 £424 351 £10,411 £30 9.0% 14.7% £96.7 £27,798 £(4,086) n/a £245 £463 322 £11,172 £35 0.0% 0.0% £98.8 £31,573 £42,437 27.8% 433 £14,564 £34 0.0% 0.0% £73.4 £28,245 £11,818 414.4% £217 £544 254 £15,427 £61 -9.0% 21.0% £104.0 £29,472 £15,877 52.7% n/a n/a 371 £16,282 £44 -34.2% 76.7% £67.8 £9,602 £60,180 0.0% £232 £586 368 £10,577 £29 -56.9% 75.2% £68.2 £78,476 £10,817 n/a £247 £489 386 £11,684 £30 -10.0% -8.5% £63.7 £80,194 £15,218 0.0% n/a n/a 112 £11,081 £99 2.2% 3.7% £202.1 £23,630 £5,675 0.0% £252 £290 288 £14,847 £52 1.4% 2.1% £78.3 £12,668 £2,613 n/a £315 £1,439 333 £7,398 £22 -4.9% -34.2% £66.4 £39,506 £3,141 349.2% £189 £800 230 £12,978 £56 -1.7% 0.0% £91.5 £6,629 £6,510 n/a £2,562 £6,052 88 £13,229 £150 4.6% 3.5% £207.3 DATA SOURCE: !MAS-insight 0 Follow us @lnsuranceTimes_ ••• Fitch ::1mas Ratings BUYING OR SELLING? ONE PIECE OF ADVICE e Olly Laughton-Scott highlights Olly Laughton-Scott is founding partner the key issue that buyers and sellers at mergers and acquisitions (M&A) should focus on specialist IMAS. He is a qualified accountant with 25 years' experience in M&A across financial services For buyers Not always, but often, various bidders They had assumed that what made sense for At IMAS we frequently speak to prospective offer broadly similar prices. So it is them forthe last 25 years would also make buyers who are keen to set out what it is they important forany buyer to have articulated sense for the buyer. But buyers by definition are interested in: the type of business, the why they are the best or 'natural' home. are a differentspecies. need or otherwise fora target to bring an There are typically three parties in any They have access to large amounts of ongoing management team, their targeted deal: the seller, the buyer and the capital, with all the disciplines and value range, geographical preferences etc. competition. By focusing on exactly what constraints this entails. They will typically This is useful. To protect confidentiality they can offera seller, a buyer's efforts have many other operations, which may be a and not diminish a sense of privileged access, become focused on those businesses for source of synergies, but equally can preclude we typically prefer to restrict the number of which they are the natural fit. them a purchaser. They will have their own potential acquirers we approach for a seller, While this may limit the number of insurer relationships, possibly consistent or while ensuring that the best qualified buyers possible targets, it ought to ensure a higher in conflict with those of the seller. are introduced into the process. overall hit rate. There are no silver medals in In some instances, they may be looking to We always ask people to commit their M&A, so buyers need to ensure they are only 'flip' the business to another buyer, whom thoughts to paper. This simple process competing in those events where they have a the seller may not see as a natural home. ensures it is given proper thought. good chance of winning gold. When discussing potential purchasers But we also ask a second question: why with our clients we talk about solving should a seller choose to sell to them? This For sellers problems for the buyer. innocuous question is of course The Big One. Probably the most useful thing we do for At its simplest this may be by allowing a An inability to provide a compelling sellers that we advise is to help them private equity (PE)-backed consolidator to argument can highlight those parties who understand how a buyer will see them. meet its growth targets. But buyers will may be keen to buy, but will actually find Anyone can run an auction, but invariably pay more for a business that themselves as serial underbidders investing understanding the business and cultural fit enhances their own value. This may be by time and effortfor no result. with a buyer and what will be important bringing new expertise or entry to a new Answering this question forces a buyer to - and therefore valuable - to them is far market. It could be a core skill that the seller think about what differentiates their more subtle. has, or a new geographic location where a proposition - and therefore how they should We once acted for a Lloyd's broker with a seller is unrepresented or where the buyer's go about seeking out suitable targets. strong brand overseas. The board were keen operation is weak. A buyer's wish list may include a to stress this as being part of what they A deep knowledge of the buyer and what commercial broker making between Elm perceived to be the value of the company. is important to it is vital in ensuring that one and £3m in earnings before interest, tax, We agreed with the assessment of their is talking to the right parties and extracting depreciation and amortisation. But that will strong brand, but asked a follow-on the fullest value. be on the wish list of a great number of question; who did they believe to be the Of course, you should take advice. But buyers. If one cannot think of a compelling likely buyers of the business? don't take our word for it. At a broker event I reason why that broker should sell to They suggested the major brokers and was on a panel discussing M&A with a oneself, rather than any of the other buyers again we agreed. We then asked about the partner of a PE firmand the chief executive seeking the same thing, one has to question brand strategy of those likely buyers: multi of a well-known consolidator. One of the whether one should even start the process. or single brand? They replied, and again we questions from the floor was "should a seller If the answer is money - ie price - then agreed, single brand. And so we pointed out use an adviser?". one needs to be clear how one is going to the firstthing such a buyer would do would I turned to the chief executive and earn a return on investment and thereby be to ditch their "valuable" brand. suggested that he field that one. To his credit justifya price greater than what the next This was not rocket science. The board he said "through gritted teeth, the answer buyer might be willing to offer. had simply not asked the right question. has to be yes". ■ 50 I Top 50 Brokers 2020 I lnsuranceTimes