Moore Network extras

David Moore and Company has gone through substantial change over the past six years. The company was "sleeping" in 2000, when Moore decided to take the business by the scruff of its neck. He says: "It became apparent that networks were springing up. We invited two brokers to a meeting with the idea of setting up a Shropshire insurance network. However, you need a Henry Kissinger-type character to persuade competitive local provincial brokers to trust each other. Then we heard about the Willis network. We met Hugh Warren (formerly managing director) at Willis, who felt we weren't big enough to join the network." However, Warren saw the potential in the business.

After joining in 2000 as the 30th member - there are now 70 - with a gross written premium of £3m, Willis soon unveiled an acquisition strategy across the network. Three managing directors at Willis made databases of local brokers, while a firm of consultants was employed. A deal was struck with Bank of Scotland to negotiate competitive interest rates for loans.

For DMC, this led to two acquisitions, completed in September 2003, of commercial brokers in Wolverhampton: David Francis with £1.5m GWP; and Howard Wright with £4.5m GWP. As a result, Moore trebled in size.

In April 2005, Edge Tancred was bought adding £8m GWP. Moore describes Tancred as "more like the office of a national broker", with a relatively small number of large accounts. In addition, half of its income is derived from fees.

Another acquisition was Wrekin Insurance Services, a small personal lines business. Following these acquisitions, almost all staff have remained.

The mix of business is between large commercial, small to medium-sized enterprises, an affinity scheme and personal lines. Clients work in heavy engineering, iron foundry and galvanizing, wooden goods manufacturers and electronics.

Meanwhile, Howard Wright had a delegated authority scheme for care homes that has been underwritten by insurer Fortis since October 2002. Dave Hamblett, now business development manager at DMC, helped Fortis produce the care home policy wording when switching the underwriter of the book at Howard Wright from Norwich Union. According to Moore, Fortis had no experience of care homes but won the contract.

From 1 July, DMC will offer a bespoke risk management solution for care homes. It includes web-based health and safety risk management training, and a 24-hour helpline. It is called Target 100 and is developed by Stafford-based Business Safety Systems. Moore comments: "The intention is to keep liability terms down, and to demonstrate that our clients are taking risk management seriously in preparation for the hard market that will undoubtedly come in two years time." Target 100 is also available for other clients at a discounted price.

Willis' cut from their members is a percentage of the enhanced commission which it negotiates. A certain amount of business needs to go through five strategic insurers: Axa, Zurich, Royal and SunAlliance, Norwich Union and Allianz Cornhill, and with an additional 12 on a second tier. There is freedom beyond this, including a wholesale facility for access to the London market and Bermuda.

Moore says: "One advantage of joining the network was participating in a Willis sales master-class presentation in Barcelona in May this year. Already we have changed the sales culture, there are four sales teams and we are using a database called Prospect Manager." Several sales staff have also been recruited.

Willis's technology house of choice is Software Solutions Partners, and there are users from its buys which need to be converted from Open GI.

Last year, DMC had its best year ever by a "long way". Moore says: "Revenues are set to be £2m, and next year should be even better."

As for the future, Moore says: "Last year, we set out a plan to double premium income to £30m GWP within three years. We will only achieve that with acquisitions and a vigorous new business drive. We are in discussions with local commercial brokers all the time. The best method of defence against the super-provincials is to become one."

DAVID MOORE AND COMPANY

Managing director: David Moore

Established: 1983

Number of offices: two

Location: Wolverhampton, Newport

Number of staff: 40

Lines of business: Commercial.

Gross premium income: £15m.