Up with the Lark

Lark Insurance Brokers, which covers clients across the UK with an emphasis on London and the South-east, is growing steadily under the guidance of its assured and relaxed chairman, Graham Lark.

The firm has recently returned to its original home in Ibex House near Tower Bridge, while its head office has been based in Barking since the early 1960s. A branch in Maidstone was established in 1995 when Lark acquired broker Davies and Thompson.

Graham Lark, whose cousin Stephen Lark became managing director in 1993, cites two turning points that have propelled Lark's success. The first was in 2000 when Sedgwick UK Risk Services, after a 30-year tie, sold its 30% stake in the business following its acquisition by Marsh. Graham Lark explains: "Effectively, we were their private client operation, and they provided us with a lot of leads, also in small commercial."

Second, in 2002, Lark Insurance Brokers acquired Investec Insurance, the well-off City-based clients of which "significantly pushed forward" the business. Lark Insurance's life and pensions division more than doubled in size with the acquisition.

Lark's corporate business is largely City-based, with banks, media and advertising companies, Lloyd's agencies, property owners, leisure clubs and accountants and solicitors, some of which have overseas operations.

The chairman says: "For businesses such as banks, you need access to the right markets, an understanding of their business and to provide a good service. Most of our client-facing staff we have recruited as trainees and developed ourselves. We use employment agencies - you do not necessarily need prior experience of banks."

Lark has a substantial number of high-net-worth private clients, mostly household business, with some motor and travel policies. And, it has carved out a niche in mid-net-worth products by developing its own and 50% of Lark's personal lines are placed with Lloyd's.

Graham Lark says: "Private client opportunities are more lucrative than corporate ones because there are less brokers in the space doing well, though, in this climate, there are more opportunities on the corporate side."

The chairman is particularly enthusiastic about his firm's niche scheme in musical instruments. He enthuses: "It runs really well, if somebody owns a valuable violin, for example, it is their pride and joy and they look after it. Therefore, from an underwriting view, the scheme performs very well. It is with one Lloyd's binding authority and two syndicates."

Technology has also been pivotal to the firm's success. Lark has had a partnership with software company Sectornet for more than 15 years. In recent years, it has upgraded to its Windows version, and has introduced full quotation and calculation software for its largest household scheme and for classical instruments. It can automate premiums, documents, index linking and renewals.

When asked about insurance companies, Graham Lark comments: "Most of them have fairly inefficient legacy IT systems; they need to improve the communication between broker and insurer by investing in streamlining their systems. They are big organisations and it takes them an age to make decisions; whereas the smaller insurers are more proactive."

The Financial Services Authority visited the broker in March for an Arrow visit; everything was found to be in order. Graham Lark is relaxed about regulation, he says: "Every broker should follow the rules, I think the rules are fine as they are."

Lark's chairman has ambitious plans for the business; he wants to double the revenue and size of the business in the next five years through organic and acquisitive growth. He says discussions are under way with a broker in the South East and says they are prepared to acquire anything up to £15m gross written premium. He adds: "We would either transfer their business into one of our offices or be large enough to operate as a separate branch."

In the first quarter of 2005, Lark grew 8% compared to quarter one in 2004, which saw 5% growth.

LARK INSURANCE BROKERS

Chairman Graham Lark

Established 1948

Number of offices three

Locations Barking, Maidstone and London

Number of staff 150

Lines of business 60% commercial, 40% personal

Gross premium income £52m.