Kingsbridge - The specialist

Steve Wynne founded Kingsbridge in 2001 to handle a small number of large corporate, often specialised clients with a small number of highly experienced staff - including some from a buyout of a book of business from Jardine Lloyd Thompson. The broker came into being because manager-owner Wynne was not convinced that the major international brokers were giving Rolls Royce service to their clients and he saw an opportunity to set up a niche player to offer a higher level of service. The broker was set up near Reading originally but soon developed business in the South-west; its office in Overbury provides a more convenient location for these clients.

Throughout his career, Wynne has always been client-facing even when promoted to more senior roles. Kingsbridge is not the first broker start-up Wynne has experienced: in 1995, he set up broker Rochester Kemp with two colleagues from JLT (formerly Jardine) in Manchester, however, in 1998 he sold his stake. He says, somewhat cryptically: "I didn't feel the same passion as the co-directors for how to take the business forward." At this point, he joined Liverpool-based Burke Fords as UK sales director to give the small provincial broker experience with corporate clients. However, in 2003 Burke Ford was sold to JLT, bringing Wynne back full circle.

After having worked with JLT on major accounts in London for another year, Wynne came to the conclusion that he did not want to work for a very large broker. At this point - in 2001 - he set up Kingsbridge through a management buyout: "I paid for clients who had been with me for a number of years and took them with a small team. By instigating a buyout, we avoided the hassle of restrictive covenants."

Over the last eight years, Kingsbridge has grown steadily in size. Offices were opened in Liverpool - to service clients in the North-west - and in Guernsey for the development and management of captive insurance companies. "I was frustrated at the level of service for clients in Geurnsey, so we thought we would take control," says Wynne.

Expertise

Niches in which Kingsbridge are major players include quarries and suppliers, professional services, utilities and water. These areas have grown with staff developing particular expertise; Wynne himself first gained experience in the UK water industry with client North West Water at the Manchester office of JLT in the 1980s. The niche approach is reflected by the brokers' marketing campaigns: instead of going with a volume approach, it contacts a potential client using its own bespoke database of prospective clients with highly tailored newsletters and industry bulletins.

The insurance products offered by Kingsbridge are also highly specialised and tailored to the client. For example, Kingsbridge has an environmental policy that provides cover for customer compensation payments that link with Kingsbridge's captives. "We play to our expertise then use captives to develop new products and services," notes Wynne.

Predominantly, the business looks after commercial clients where the average turnover is between £5m and £10m but one area that Wynne identified as a potential growth opportunity two years ago for Kingsbridge is online solutions for freelance professional services professionals. The broker has invested in developing a system by which these individuals can go through the transaction process, including downloading policy documents online in approximately eight minutes. The average turnover of these clients is around £75,000.

Market research commissioned by Kingsbridge showed that the online professional service market could be as large as two million people. The proposition has been a success with in excess of 4,000 sales and a renewal retention rate of 82%. Understandably, Wynne is pleased with this. He comments: "Given that some will no longer be able to afford to work freelance, 82% is good. We have brought to market a more cost-effective offering to allow these small businesses to reduce their overheads, which is music to their ears in these troubled economic times."

Kingsbridge's success is attributed by Wynne to the high service levels that its staff gives clients; some customers have been with Wynne for over 10 years. He says: "In my mind there is no doubt that client service is the holy grail. Throughout my career, I have lost relatively few clients due to service, so this is what I try to instill in my staff. If you look after clients and are good at your job there is no reason why you shouldn't succeed."

Wynne sees Kingsbridge's main competition as the major international brokers: "Most clients we have were with major international brokers previously. Our business plan is to keep to the core of being a niche player. Being focused puts us in a better position to give high service levels, therefore we compete on a level playing field with national brokers where we have the expertise." There are currently two FTSE 100 companies on Kingsbridge's books.

Green credentials

Working with FTSE 100 companies means that Kingsbridge has developed a formalised environmental policy to reflect the concerns of larger organisations. Wynne has noticed that an increasing number of clients are requesting details of Kingsbridge's environmental policy, asking about the broker's carbon footprint, office environment and the use of paper and cars. Wynne says: "Proof of an environmental policy is required by almost all larger clients now."

Kingsbridge has not been hit severely by the recession because it is not in construction, retail or vehicle manufacturing, yet it has seen some clients with decreased turnovers. Wynne says: "Our clients are predominantly monopolies, so they are feeling some effects from the recession but not as much as many. We are trying to be conscious of the risks our clients are facing, so we have to adjust our fees and earnings to reflect the clients' situations."

Despite the recessionary pressures on staff, Wynne believes that Kingsbridge is a good place to work. Wynne believes that Kingsbridge's secret is treating its staff with respect: "I think about my staff as human beings. I try to be understanding of health and family issues without putting pressure on them." There is plenty of 'young blood' in the organisation - a marked contrast to an industry that is, in general, struggling to attract under-30s.

A competitve package of benefits that includes pensions and access to dental care has also helped, while pay levels are in line with those of the international brokers. Staff members are given external training along with personal development courses,while Chartered Institute of Insurance online training facilities must be completed by all employees on an annual basis to help make staff ready to take on more responsibility.

Bonuses are also paid to all staff when the company is doing well, some of which are discretionary and others more formal. "We all share in successes. Bonuses shouldn't be down to a small number of managers but rather shared among all staff members that have put in the work to make the successes happen. Broking is a people business, so keeping the right people is critical for our success," explains Wynne.

Kingsbridge will continue to grow at a steady pace according to Wynne and there are no stated plans for acquisition. He says: "We will focus on our niche areas of expertise and growing organically for as long as there is still a space in the market for niche brokers to compete with the larger brokers."

KINGSBRIDGE

Managing director: Steve Wynne

Established: 2001

Locations: Cheltenham, Guernsey, Liverpool and Reading

Number of staff: 35

Main line of business: Niche commercial

Gross written premium: £18m.