A clear, focused strategy.

- Insurance Age staff
- 12 Nov 1999
- Indicative reading time: 2 minutes

Although Investec is a subsidiary of a global group, it attributes its success to broking local and niche business, Paul Anscomb tells Shona Cronin.

Insurance broker Investec Insurance was set up in 1993 as a part of
the existing Investec Group, an independent international specialist
banking company. Since then, the broker has increased its gross written
premium to approximately £11m and expects it to increase further to £14m
within the next two years. Although the broker is a subsidiary of a large
global company, it has not positioned itself as a worldwide insurance
operation, but instead focuses on UK business and providing international
insurers with local business solutions.

Paul Anscomb, managing director, believes that the firm was rather
unfocused when it was set up as it was involved in many different markets
and applying its staff across a range of disciplines, rather than
identifying individual's talents. This situation was rectified in 1997
when the company segmented its business in order to provide high-quality
service and produce greater staff value.

Segmenting business

All high-volume commercial lines business, non-VIP personal lines
business, and all scheme business was transferred to Sheffield, with the
corporate commercial business with commission of above £5000 and connected
high net worth personal lines business moving to the London office. This
office is now concentrates on a face-to-face service, while the majority
of the business in Sheffield is processed over the telephone. All
life-backed investment business is transacted from the Jersey office,
which is run by approximately 10 staff.

The broker describes itself as a multi-niche player and currently runs
three specialist schemes. The first of these was Supercover, which is the
UK's second pubs and clubs scheme. This was acquired two years ago at the
same time as Hart & Co insurance brokers, which has since been sold to RP
Hodson. The broker says Supercover's gross written premium is growing by
an average of £70,000 a month.

The broker has also recently launched SportsElite, which offers a package
of insurance and non-insurance products aimed at the professional sports
person. This includes legal, accountancy advice and tips on dealing with
the media.

Freehold Advantage is another scheme, which helps leaseholders purchase
the freehold on their flat, providing their property is insured with
Investec Insurance. The broker is also working on a Rent Deposit Scheme,
which allows customers to take out insurance, rather than paying a deposit
for a rental property.

Commitment to charity

Mr Anscomb is proud of the broker's commitment to charitable
organisations.

Following the company's acquisition of Supercover, a deal was struck with
the Teenage Cancer Trust, whereby a percentage of the premium is given to
the fund every time a policy is bought. Investec donated £22,000 to the
trust in 1998. Encouraged by this success, the broker joined forces with
Variety Sunshine Coaches in June.

Under this deal, Investec provides the insurance for the coaches, but
offers a rebate to allow more vehicles to be bought. Mr Anscomb says: "We
get a very good reaction from people when they discover that we are
involved with charitable organisations, because they are happy to see that
we are giving something back to the community rather than just taking. I
think it is important that customers see that we have a moral
conscience."

The Investec Group, as a whole, has experienced growth of 30% over the
last year, helped in part by the expansion of Investec Insurance. Mr
Anscomb says the broker is also pursuing many new projects.

Since 1993, Investec has made four acquisitions: John Hatton & Co (which
was primarily life and pensions business), HLF Hudson (primarily high net
worth business), Hart & Co and Supercover. However, Mr Anscomb believes it
is unlikely that any further acquisitions are on the cards. He says: "If
we were to buy another business, it would have to be in an area that we
were looking to move into, or a business which could improve our service
standards."

INVESTEC INSURANCE

MANAGING DIRECTORS: Paul Anscomb (above)

ESTABLISHED: 1993

LOCATIONS: London, Sheffield, Jersey

NUMBER OF OFFICES: 3

NUMBER OF STAFF: 70

LINES OF BUSINESS:

Commercial: 30%

Personal: 20%

Life: 50%

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