Broking on the Tyne

Bishop Skinner was started from scratch with two staff, and derived its name when it used the accounting facilities of London-based Bishop Skinner and Company.

Founder Ron Brewis had four years experience at Cornhill and nine years working at Phoenix. After deciding he didn't want to continue as an underwriter, Brewis set-up on his own, without financial backing or any 'ready-made' business. Around three years later, when the company was in a position to hire, Brewis could see he was on to a winner.

Donald Jones says: "It was easier to set-up in the 1970s - it was a vibrant market."

Brewis adds: "There were around 10 insurance companies here then. Now Leeds has taken over as the focal point of the north. There has been a decline in the shipping and manufacturing industries here." There has also been a reduction of broker numbers in Newcastle, which has been speeded up with the acquisitions made by Towergate and Smart and Cook.

For Bishop Skinner, commercial insurances and personal lines were the order of the day. The first acquisition of note was in 1989 when it bought Eric B Sadler. They moved in 1981 to its recently expanded grade II listed premises adjacent to St. James' Park, the home of Newcastle United Football Club and bought the premises in 1984.

There have been six acquisitions in 17 years. Prestige was the largest and last, with a gross written premium of £1.5m. Although there are no definitive plans developed, acquisitions are again on the broker's agenda, and this is seen by the management as the best way to grow quickly in a soft market.

"Traditional" is a word that fits neatly with Bishop Skinner's business ethos and evolution. 25% of its business is in the leisure area and it has several schemes for licensed trade customers. It also concentrates on small to medium-sized enterprise and property business, including warehouses, manufacturers and retailers, around 20% is personal lines.

Brewis reflects: "Newcastle is a city but when you walk around it is like a large village. We know what's about, and we know what to avoid."

Its last financial year ended in June 2005, which was a "successful year", while there was a "growth in profits despite FSA and the soft market". Jones has described their client retention as "excellent".

Bishop Skinner is looking for organic growth in SME business for 2006/2007. "We are putting new accounts on all the time. Any growth is welcome because of the soft market. We have begun to market towards high net worth."

Three years ago, Brewis became chairman and Jones became managing director. It was a restructuring with the appointment of new directors at the same time. This has given Brewis, who still looks after his own clients, more time to concentrate on marketing and promotion, and step back from the day to day running of the company.

Many of Bishop Skinner's staff have worked at the company for over 10 years, while it has also recruited from the nationals. Jones says: "They enjoy it and there is room for promotion."

The broker has an onsite server with Software Solutions Partners and are already using imarket over the internet.

When asked about insurers, Brewis replies: "We support our local insurers as much as possible and we have developed personal relationships with them, and this leads to doing more business. Standards from the local offices are good. We've grown up with many of the individuals. Royal & Sun Alliance, Zurich and Allianz Cornhill, who have pulled out, have realised they are not going to be the same force in the area as the ones that have stayed."

The philosophy at the broker is to continue growth, provide a personal service and give customers direct access to decision makers. For staff at Bishop Skinner, the most satisfying aspect is building up a close personal relationship with people in the business community, many who have become friends. Meeting with amicable Brewis and Jones underlines why they have been so successful, and why their ambition of remaining at the top of the Newcastle broking league under the same management team can be achieved.

BISHOP SKINNER

Chairman: Ron Brewis

Established: 1973

Number of offices: one

Location: Newcastle

Number of staff: 47

Lines of business: Leisure, small to medium-sized enterprise and commercial property.

Gross premium income: £15m.