The rise of Crosbie & Jack

Crosbie & Jack is celebrating its 40th anniversary this year and, given its recent success, there is reason to party in style.

In 2002, the broker had a gross written premium of £8m, which has now almost tripled to £23m. Over the next two years, it is looking to grow further to around £30m GWP.

The broker took off after it reformed in 2003 as a limited company. Managing director Gordon Crosbie reflects: "We were becoming too big as a partnership and we wanted to capitalise on acquisition opportunities."

Crosbie took over from his father Frank Crosbie, who is still a director and consultant, after his retirement in 2000. In all, the broker has six directors, all of which are members of the Crosbie family.

Half of Crosbie & Jack's clients pay premiums above £30,000. These are 'corporate' clients, according to Crosbie, with 30% of its commercial business below this threshold and 20% personal lines. Each corporate client has an account executive, a corporate broker and a claims handler, while there is an office dealing with personal lines. There is also a Norwich Union bonus underwriter based at the broker's head office.

Eight years ago, Crosbie & Jack's business comprised 60% personal lines, but has since made a concerted effort to win commercial business. This consists of large construction risks, including demolition, retailers with more than 20 branches and fleet operators with more than 250 vehicles. The broker offers a 'three-way fleet' service with NU, and customers could benefit with a premium rebate of up to 20% if advice and training is undertaken. It is currently looking to enhance this service with telematics, a vehicle electronic tracking device. The acquisition this June of Ferguson Law in Aberdeen has added large offshore clients, which include electrical contractors working on oil rigs. Crosbie describes his account portfolio as "nicely balanced".

The acquisitions for Crosbie & Jack have become more high profile. Crosbie explains: "We went ahead with two small acquisitions in 1995 and 1996 in Stirling and Falkirk. However, in the last two years, we have acquired four brokers, with Ferguson Law being the latest. In July 2003 we bought Johnston Rose, which had a premium income of £2m, mostly commercial."

Crosbie & Jack merged with Glasgow-based James Davis earlier in the year and is looking for more acquisitions. Crosbie says: "Glasgow has not settled down in the same way as Edinburgh. In particular, there are many older brokers that give rise to opportunities." He notes Willis has been particularly acquisitive in Scotland.

Although, 2004 was a relatively quiet year at Crosbie & Jack, it recruited three account executives to maintain premium growth and is starting to reap the benefits. Indeed, the proof is 25% growth in revenue over the first financial quarter of last year, from May to August 2005, excluding the cost of acquisitions.

However, despite acquisitions, the Falkirk-based broker is not forgetting its roots. Retention levels are 95%, with some business stretching over 35 years. Crosbie is keen to stress account executives are rewarded just as much for retentions as for new clients.

There is also an individual claims department comprising four staff. Crosbie & Jack also provides its staff with both internal and external training, with a training manager assigned to each department.

Like most successful brokers, the company looks after its technology. It uses CDL, and Crosbie wants to put Ferguson Law on the same platform, so all offices are linked up to head office. It is reviewing its IT platform and is due to assess CDL's new Windows-based system CDL Strata.

When quizzed on their relationship with insurers, Crosbie replies: "We try and deal with local insurers, mainly in Glasgow. There is not a lot of business moving around and, therefore, insurers are trying harder to obtain it."

CROSBIE & JACK

Managing director: Gordon Crosbie

Established: 1965

Number of offices: five

Locations: Falkirk (2), Aberdeen, Stirling, Glasgow

Number of staff: 65

Lines of business: Commercial

Gross premium income: £23m.