Marshall Wooldridge - Built with the strength to endure

Howard Marshall has been very busy. Not perturbed by the current financial markets, he had just completed a deal to buy Leeds-based Haxton Nicholls Hutton (also known as HNH Insurance Brokers.)

Marshall is no stranger to acquisitions after having purchased the trading name and client book of Kay Hardman and Company in 2005, yet he believes that the credit crunch did him no favours when securing the loan necessary for purchasing HNH. Marshall says: "It got quite hairy with the bank. They changed their mind and set us a rate for the loan 2% above what we originally thought it would be. I was a bit upset they wanted to play silly, however, because of our 35-year relationship with the bank, I was able to negotiate a one-year fixed rate that has brought us back to a similar level (as the original). Luckily, we only had to borrow about 50% of the purchase price."

Despite losing a property client that went bust in October and an expectation to see more failures, Marshall believes that insurers always raise premiums in a recession because they have to go back to writing business for profit. He is bullish about his broker's potential: "Most of our clients are strong enough to weather the storm. I have seen it all before; we have strong growth in new business so are not expecting to suffer."

Lifelong

Marshall has spent the whole of his career in insurance, having first worked with his fellow founder Jim Wooldridge, who retired in 1996 at Arthur R. Jones before founding Marshall Wooldridge in 1973. "Jim and I both had the idea that we would like to start our own business and decided to make a go of it. We had enough business between us as restrictive covenants weren't as strict back then. I had been kicked out of my old job, which helped move things along faster; it was the best thing that ever happened to me. In our first year, we made £10,000 in commission. A lot of clients came with us and some are still with Marshall Wooldridge today," Marshall reminisces.

In his long career, Marshall has faced many challenges and he believes that such tests still help him evolve as a broker. "Our first major challenge was that we wanted to become members of the Corporation of Insurance Brokers. It was the elite back then and the CIB helped members get an extra 2% commission. We became Fire Offices' Committee-listed before we joined the CIB in the end. One thing I know is that you learn something every day. For example, last week, when looking for cover for a marine client, I learnt about first and second rejection cover. Once, we were asked to look at personal accident possibilities for the stunt driver of the Batmobile," he reveals.

Marshall is a big believer in the use of technology but systems have given him many headaches over the years: "We had our fingers burnt at the turn of the century with 24/7; it was a beautiful looking system but it didn't work. When it was closed down, we were left high and dry and had to bring in a consultant, which recommended using Insurecom's TAM.

"We have been fortunate that both firms we have taken over have also been on the TAM system, which was one of the biggest plus points of both deals. I have been especially pleased with the accounting and management information sides of it. We like having everything on board our own servers now, as we don't like using expensive external telephone systems."

However, Marshall is struggling with more technology issues: "One of the biggest issues is what to do with obsolete files - we have a cellar full. All of our claims are now paperless. However, having everything stored electronically has put pressure on the virtual private network between offices. That is just the pressure of an expanding business."

Another of the challenges that Marshall has faced is working with family; both of his sons are shareholders in the business, with his eldest son running the broker's financial services division. "You can be more critical of your own family," notes Marshall. "I sometimes wonder if perhaps some of my other staff could also benefit from the same kind of brutal criticism I give to my own sons but it is easier to criticise when you are dealing with your children."

Loyalty

Marshall believes that staff relationships have been key to Marshall Woolridge's success and many of his employees have been with the company for over 10 years. "We have a good relationship with our staff and I hope I lead by example," says Marshall. "We train our staff to help them make the best of their abilities and take them to meet insurers to help them build up relationships. We try to make as many promotions as possible from within. Our current managing director joined us in 1989, straight from school."

Staff at Marshall Wooldridge are encouraged to develop relationships with underwriters early on in their careers: "I am at a stage in life where all the insurer management that I had relationships with have retired. By having our younger staff spend time with insurers, we are building long-term, stable relationships for the company."

Marshall Wooldridge is a member of Brokerbility and Marshall believes that membership of the broking group helps his staff barter with insurers to get the best deals for their clients. He highlights: "With £450m premium between 25 members, Brokerbility has large clout in the market as it consists of the kind of brokers insurers want to deal with. Everyone with Brokerbility remains fully independent. Independence is important to us. I don't want to be told what to do, just like we will not just be telling HNH what to do."

Keeping close control continues to be an important part of Marshall's future vision for his business: "We want to reduce our dependence on specialist wholesale schemes; we don't like the lack of control."

As our interview ends, Marshall speeds off to another meeting but makes sure to emphasise that his time in insurance is far from over: "With so many of my contemporaries retiring, my wife keeps asking why I am still working. I have a strong team around me and am backing off from the administration and financial side of the business but I have no plans to retire. Marshall Wooldridge is continuing to go from strength to strength and after 35 years I am here to stay."

MARSHALL WOOLDRIDGE

Chairman: Howard Marshall

Established: 1973

Locations: Leeds (four offices)

Number of staff: 70

Main lines of business: Commercial

Gross written premium: £22m.