Flying Scotsmen

In June, the JW Group will complete its third merger and acquisition in the last six months. The move will see the firm's total gross premium income rise to around £25m.

Prior to the JW Group, Davie headed the Jacob Whittle Partnership, the result of a merger in 1995 between Charles Jacob and Co. and Whittle and Co. The staff base at that time was 13. Following the acquisition of Glasgow broker Marshall Ewart & Graham in June, the JW Group - which emerged in June 2002 - will have a staff base of 110.

The acquisition of MEG from Thompson Heath & Bond follows swiftly in the footsteps of a merger with Adam & Rose - also based in Glasgow - in February. MEG will move into new premises with Adam & Rose, and will be incorporated under the JW name. Davie says: "We had a reasonable amount of business already in Glasgow being serviced from our Edinburgh office and it made sense to have a presence there. The Adam & Rose merger gave us that springboard and the MEG acquisition has consolidated our presence."

The JW Group was created three years ago when the Jacob Whittle Partnership merged with Carlyle Insurance & Financial Services to form JW Group Insurance & Risk Managers. Davie says: "We kept the two companies going, one to handle the general business and one to handle the financial services business." The JW Group's two other affiliated companies are JW Group Investment Strategies and JW Group Inspection Services.

Also in 2002, the JW Group acquired Lowland Insurance Brokers, which had three offices and 32 staff. And, in December 2004, the JW Group acquired the AB Insurance Centre in Berwick.

The group's income is largely commercial, with Davie identifying bed-and-breakfast, household and high net worth as specialist products. He adds: "We have very much a niche facility on high net worth, where we provide an account executive and a dedicated team to look after high-net-worth individuals. However, our household account is the most profitable side of the business."

Davie says a recent contribution to the company's success has been the close attention paid to in-house training. He says: "In December 2003, we engaged a company called Discovery Coaching, which specialises in personnel development and training, to train our managers. I learnt that customers do not just comprise clients, but anybody who receives your attention, including staff, banks and accountants. We have also taken on a training officer who works three days a week and moves between our six offices. She works on time management, customer service, communication and leadership skills, meetings, stress management, telephone interviews, selling and assertiveness. The feedback from the staff is very positive."

Davie is also looking for the talent of the future. "We have a PR company that is helping us advertise in local universities. Our PR company has suggested we go and spend time with students, educating them about insurance." When it comes to hiring new staff, Davie knows what he wants. He says: "What I look for above anything is the right attitude, even if they have an engineering or other unrelated degree."

Although the JW Group has made a number of acquisitions, Davie warns about hidden costs. He says: "Data transfers rarely work successfully, and these have required additional man hours to perform the work manually. There are also training costs, such as for new computer systems." He adds: "You never seem to budget things such as overtime correctly."

Within the soft-market climate, Davie's target for 2005 is understandably modest. He says: "We would be happy for income to remain stable in 2005. Six months into 2005 and we are a little behind because of the soft market."

Davie's philosophy provides an insight into his firm's success. He says: "When you come to a fork in the road, take it. We make, take and action decisions. We don't stand still." With another acquisition about to be completed, the JW Group is certainly moving forward.

JW GROUP

Managing director: Ken Davie

Established: 1995

Number of offices: six

Locations: Kirkcaldy, Edinburgh, Galashiels, Jedburgh, Berwick-upon-Tweed, Glasgow

Number of staff: 110

Lines of business: Mainly commercial

Gross premium income: £25m.