Personal services

Chris Blackham is an outspoken entrepreneurial broker who has little intention of hanging up his spurs in the near future. His firm, Layton Blackham, of which he is chairman and chief executive, has accumulated various labels - most commonly 'super-provincial' or 'composite broker' - and, while not an out-and-out consolidator, LB is also a player in the acquisition arena.

Blackham himself is a strong believer in local personal service, and his firm provides advice across the country through its national offices and via its network and franchise brokers.

Organic growth

The acquisitions and organic growth made by LB last year cemented the company's intention to continue climbing the ranks as a top 50 broker. So, will 2007 see the broker focus on larger deals? "Yes, of course, the position and financial strength of our new group allows us to consider significant deals when the timing is right," says Blackham, adding, "but I haven't forgotten my roots."

By this, Blackham refers to the group's beginnings as a one-man broker above a shop in Covent Garden, established in 1984. He continues: "A number of my management team started their own businesses in similar circumstances," adding, "it's virtually impossible for someone to do now what we did back in the '80s due to regulation, insurer agency requirements and software being just a few of the obstacles faced by those who share the dream of owning and building their own business in insurance broking."

Blackham also mentions a little-publicised but nevertheless important project LB has been refining over the last few years - LB Franchises. He explains, "As with everything we do at LB, we test out our ideas and make certain we have it right before going public."

Blackham mentions the launch of Layton Blackham Business Solutions as verification of this method. He explains: "There are just as many skilled, entrepreneurial broking professionals today as there have ever been. We have designed the franchise concept, targeted at these people in the commercial broking sector, which allows individuals or small teams to establish their own business and share in the capital value while gaining from our experience, cash-flow support and market power to ensure their new business hits the ground running."

Blackham goes on to explain one of his convictions about the market and a key theme for the company going forward: "Insurance professionals should not be tied to desks or computers - they should be out there providing unrivalled service to their clients. By that I mean the kind of service that can never be matched or beaten by the direct players, online quote engines or overseas call centres. Our proposition, which is already working for a dozen brokers, and which is overseen by Brendan Mulligan, provides the freedom to do what the skilled broker does best, leaving administration to the experienced team at LB's dedicated franchise office in the Midlands."

Regarding the target audience LBF is seeking, Blackham says: "Anyone who's ever been to a British Insurance Brokers Association event will know that we brokers are a strange and varied bunch. We come in all shapes and ages, and often with different ambitions. If I tell you that the age range among our current franchises is nearly 40 years, this demonstrates the imperative to be flexible, which a lot of hard work has gone in to ensure."

He continues: "Specifically, we are interested in talking to insurance professionals, including young sales executives keen to retain involvement with the business they win and share in the long-term financial value; experienced 'outside' brokers with a loyal commercial book with at least £100,000 brokerage/fee income; and senior executives uncertain of their future but certain that they still have plenty to offer their clients."

Blackham looks poised to expand the list, but then concludes: "In essence, it's someone who wants to take control of their business life and set their own priorities, and it goes without saying that each enquiry is treated in the strictest of confidence."

Past acquisitions

LB's last acquisition was Worcester-based broker Cox Hepburn Insurance Services, which was acquired to function as its West Midlands Regional Centre.

Cox Hepburn was LB's 22nd acquisition and brought £10m of gross written premium, of which 90% was commercial, including a large property book (Professional Broking, July 2006) Blackham described it as a "miniature Layton Blackham" at the time, and the deal pushed LB's GWP to around £150m. Blackham also said at the time, "This marks the beginning of the next phase in our long-term strategy, and we see significant opportunities for profitable expansion, further selective acquisitions and growth of Layton Blackham partnerships over the next 12 to 36 months." This focus also included greater concentration on growing its network and franchise arms.

Prior to that, LB's acquisition of Anchor in June 2005 helped boost the year's results with overall turnover for 2005 up by 18% to £23.6m, due primarily to strong organic growth and seven months' contributions from Anchor.