At the head of the Cue

Running off a list of visitor attractions in Gateshead, Stevan Cue lists the Sage - a music centre, the Baltic Arts Centre, and then the Hilton. Perhaps, unsurprisingly, with the Hilton high on the list, Gateshead, as Newcastle's twin city is often overlooked by visitors.

Broker Todd & Cue is not held back by its lack of visitors. It brokers business across the UK and the Republic of Ireland and has partnerships in the US and Australia. It also caters for clients with European offices.

At the end of this year's fiscal period, in February 2006, Cue says Todd & Cue is on target for an increase in its commission income by 50%, which has been achieved in two and a half years. Gross written premium has also risen from £12.5m to an expected £17.5m at the end of February 2006.

He says the success has mostly been attributable to new business and through "squeezing better deals" with insurers and finance companies. He says "there is no real organic growth in the soft market".

Todd & Cue's book encompasses many trades, according to Cue. Its main books are in licensed premises and road transport, with haulage and motor dealerships prevalent. One client has 25 dealerships with outlets from Scotland to South Yorkshire. Cue says: "If the motor market turns in 2006, we will hit some organic growth if rates go up."

It has a scheme for a nationwide pub chain. Cue says: "Many insurers withdrew from scheme business, which was hit following the events of 11 September 2001 and the collapse of Independent Insurance. However, even then, we managed to go ahead and the current market is more conducive to expanding our market share in licensed trade."

Despite the introduction of 24-hour drinking laws, Cue comments: "The 24-hour drinking laws will only change risks if landlords introduce discos, door staff and entrance charges."

Affinity deals with two retail groups will be set into motion in the first quarter of 2006. This will tap into the SME market and will be technology-driven with quotes available online. He says: "We will be selling packaged retail products to individual shopkeepers and small chains. Technology is the key in this area - you need to make the offering slick."

The main value that Cue finds important in broking is service. Todd & Cue has four full-time claims handlers and offers to have somebody on-site within 24 hours. He says offshoring is a 'big, big problem'.

The Gateshead broker also offers cyberliability cover, though Cue admits it has yet to take off, however, he believes it is a market that will grow.

In order to recruit, Cue admits to 'poaching' staff from Norwich Union and Marsh and cited uncertainty caused by offshoring and Spitzer as reasons for the moves.

Commenting on potential future acquisitions, Cue says: "We are more aware and financially disposed to acquire than ever before. However, there are not that many brokers in Newcastle."

Cue feels let down by Sirius' recent emphasis on its new system Sirius 21, which has a remote server, because - in November 2003 - the Gateshead broker took on Sirius for Broking after being sold the benefits of having an on-site server. He says Sirius has taken the eye off the ball for its existing customer base using Sirius for Broking." Sirius had not commented at the time of going to press.

Cue believes that, despite a large amount of money being spent, many of the new systems underestimate the time it takes users to reach the quotation stage. Hence, Todd & Cue is registered with imarket and, so far, use via the website and Axa Business Risk is working well.

Todd & Cue uses a large insurer supplier range though, for licensed trade, it uses only one on an annual rolling contract. The new affinity contracts will have a panel of two or three insurers.

Ecclesiastical and ACE have opened offices in Newcastle within the last three years, joining NIG, Axa and NU.

Trevor Todd, a former director and one of the two founders and now a consultant, sold his stake in Todd & Cue in September 2003 in a planned succession. Cue is one of two shareholding directors, along with company secretary Chris Scott.

TODD & CUE

Managing director: Stevan Cue

Established: 1980

Number of offices: one

Locations: Gateshead

Number of staff: 27

Lines of business: Commercial

Gross premium income: £17.5m.