A Beddis of roses

Beddis & Partners, formerly known as Beddis Hobbs, began trading in 1985. It was founded by chief executive officer Peter Beddis after he had spent 16 years with brokerage AJ Norcott & Partners.

B&P grew quickly, making a profit within two years and later making three acquisitions. The broker now aims to reach £50m premium income by 2006, and expects to announce the acquisition of a Midlands broker by the end of the year.

B&P is rooted to the Midlands and recently moved to new offices in the heart of Birmingham's financial centre. The move will accommodate the company's projected growth and boost its image, according to Beddis. He says: "We enjoy close working relationships with lawyers, accountants and venture capitalists in the Midlands, all of which recommend clients to us."

As part of long-term plans, Beddis sold 30% of his equity holding in the company to its three directors, David Wheatley, Steve Nelms and Neil Dunsby earlier this year. Worth £1.1m in total, the directors took 10% each and intend to take over the business when Beddis retires.

B&P operates throughout the UK and has an established network in Europe and North America. Although the business is expanding, Beddis stresses he does not want the company to emulate a big international broker. He explains: "We offer a client-specific service. We ask them what they want and are small enough to be flexible."

B&P has three categories of clients. Those in the first category have premiums of between £5000 and £20,000 and are mostly dealt with electronically; those in the second have between £20,000 and £75,000 premium and are B&P's core market; and those in the third have premiums of £75,000 to £1.5m.

Beddis says: "Most of the work in the first bracket is done online but if a client needs a visit it is no problem. Even the smallest of businesses can become big. Claire's Accessories, for example, began with us with one store but is now on every high street."

Credit insurance is also a successful area, accounting for around 7.5% of B&P's premium income. Beddis says: "Credit insurance has grown in popularity as the economy has started to slow down and more companies have gone into liquidation."

Separate divisions

Beddis Commercial Property is a separate division and specialises in providing insurance for property owners, managers and developers. It accounts for £12m premium income, much of which comes from outside London. According to Beddis, most of this business comes through recommendations.

Beddis says having a good reputation also encourages high-calibre employees to sign up. He says: "We are trying to bring in graduates and provide new recruits with a mentor throughout their career." He points to Terri Grainger, young achiever of the year at the 2003 British Insurance Awards, as evidence that this approach works. He says B&P has also got ahead of the game by employing a compliance officer.

"While most brokers are still going through the maze of Financial Service Authority regulation, we were one of the first to register," he says.

"I don't think we will have any untoward difficulties. We are an investor in people, have training in place and have been through General Insurance Standards Council audits."

Beddis estimates compliance will cost his company between £50,000 and £70,000 per year, and says this cost will really hit home. He says: "It is not just the application costs but the cost of employing someone to get you through it and ensure you comply afterwards. However, we see this as a necessary price to pay to ensure high levels of professional integrity and technical competence in the industry."

Beddis believes his company's success shows that regional brokerages can maintain high standards. In the final analysis, he says: "There is still a role for strong independent brokers that don't want to be part of the national broker sausage machine."

BEDDIS & PARTNERS

Chief executive officer: Peter Beddis

Established: 1985

Number of offices: one

Number of staff: 60

Gross premium income: £32m.