Bolton's wunderkind

The North-west broking market has so far avoided significant consolidation, hence there are a large number of localised medium-sized brokers. Local broking is alive and kicking at D Barnett where clients come and never seem to leave.

Paul Twitchett, managing director, boasts a retention rate at renewal of 98% and says his clients, who are mostly within a 75 mile radius of Bolton - although there are clients as far away as Glasgow and London, are buying up office blocks, shopping centres and industrial estates across Manchester. Twitchett says: "Manchester and Liverpool are thriving markets that going through significant regeneration."

Acknowledging other brokers can gain better rates, Twitchett says the retention is down to service. One client has just renewed for the 35th consecutive year, while many others have been with the broker for over 25 years. Around 5% of the book is personal lines, or as Twitchett says, "VIPs", meaning D Barnett only caters for directors of existing clients.

Since joining the broker last June, Twitchett has encouraged his staff to make more face-to-face contact with clients rather than using the telephone. The number of relationships with insurers has also been reduced. One of his remits is to take the professionalism in the corporate world at Willis and Opus, and apply it to a local independent intermediary.

Twitchett is looking for sustained organic growth of 10% each year and is also looking to acquire brokers that are keen to stay on with their book, at least in a consultancy capacity. Twitchett has been trying hard to acquire in the local market but has been beaten to several targets by larger consolidators. He remains determined to find the right fit.

So far in the first six months of the current financial year, the broker has grown by 11%, despite the well-established challenging conditions of the soft market.

Twitchett says: "There has to be new wins because commission rates are heading south. We have tapped into additional lines, such as excess liability and directors' and officers'."

He continues: "We have the products and market relationships to compete with the nationals on large commercial business and can now offer health and safety risk management through a partner company. We have had some significant wins in the past two months, including manufacturers and contractors, which have resulted in gross written premiums in excess of £250,000."

There is a large insurer presence in Manchester and Twitchett says he provides business for insurers including Royal and SunAlliance, Ace, NIG, Markel, Hiscox via Evolution, Fortis and New India. He also uses Axa, which has a Bolton office, the only insurer with a presence in one of the UK's largest towns. Axa is currently setting up an office in the Middlebrook business park, and 450 employees will move from the town centre in the spring, including its small broker service division. Twitchett comments: "We deal with insurers right across the board and we support them all, however, we have tried to consolidate our markets by as much as 50%. There is a great deal of appetite out there for new business."

He also observes: "We are nowhere near the bottom of the soft market."

Twitchett wants to enhance its e-trading capacity and will revamp the firm's website in 2007. He says: "Technology is the way ahead and we haven't scratched the surface. We want to go paperless for our personal lines."

To find staff, Twitchett uses the recruitment agency that head-hunted him from Willis. He says: "We have difficulty persuading people to come out of Manchester. The perception of Manchester is that it is the insurance capital of the world up here." However, Twitchett has recruited three staff in the past six months, one for personal lines and two commercial account handlers.

Twitchett, along with hundreds of brokers across the country, has his work cut out with the challenges of growth in the soft market. The succession foresight of bringing in an intelligent, industry youngster will mean D Barnett will be able to remain independent for years to come.

D BARNETT (BROKERS)

Managing director: Paul Twitchett

Established: 1963

Number of offices: One

Locations: Bolton

Number of staff: 18

Main lines of business: Property owners

Gross premium income: £13m.