PB Week: Acquisition, acquisition, acquisition

The deals

Oval has acquired Belfast-based Bartholomew James – its first broker in Northern Ireland.(Oval’s deal with Birmingham-based Perkins Slade still hangs in the balance but is expected to be completed soon).

Giles has bought Newport-based David Moore and Co. which has over £15m of GWP, Tyne and Wear based Elliott Garden with £10m of GWP and Godalming-based Sutton Barnard with £5m of GWP. At David Moore, which is a member of the Willis Commercial Network, founders David and Jane Moore will stay to help build the business – they will each run one of their respective offices in Wolverhampton and Newport between them. Moore said: "We will have to leave the Willis Commercial Network – we are on six months notice."

According to a market source Newtown-based Rees Astley, a member of Willis Commercial Network, has bought Shrewsbury-based Clifford Challinor with £5m of GWP. The same source has told PB that Newport-based Henshalls Insurance Brokers which has around £8m of GWP broker has joined the Willis Commercial Network.

Acquisition . . .

And there are more: LFC Insurance Group has acquired Essex-based RS Hayworth and Co which trades as Shield Policies. The underwriting agency has 200 agents across the UL offering SME policies and direct insurance for certain niches. It will now be called LFC Shield.

Cobra Holdings has spent around £10m on acquisitions. The AIM listed broking group has bought Essex-based underwriting agency County Insurance Services (£4.5m GWP) and three brokers. The brokers are Hampshire-based Giles (Alton) (£8m GWP); Manchester-based JK Lee (£4m GWP) and GDK which trades alongside County in Essex. Steve Burrows, chief executive of Cobra said: "There are ten possible deals in the pipeline." Commenting on the increased rate of acquisition activity, he said: "We see acquisitions continuing apace post CGT and some insurers are saying that there will only be 500 brokers left in three years time."

Following the acquisition of Protectagroup, Cullum Capital Ventures has bought Bristol-based HLI which has £7m of GWP, £5m GWP Four Counties in Cambridgeshire and £1.6m GWP Hertfordshire-based Insurance Means.

Manchester-based CBG has bought Oldham-based Howgud and its trading subsidiaries EDN (insurance services), E Davies (northern) and EDN (financial services) for around £2m assuming certain targets are met.

Meanwhile, Groupama has bought Liverpool-based Choicequote which has £25m of GWP of personal lines in cover such as taxis, non-standard motor cover and motor trade risks.

One ray of light for the ‘independent broker camp’ was the management buyout of wholesale broker Camberford Law by managers David Ottewill, Paul Cooper and Simon Carter. Lord Sheik remains as chairman and David Ottewill will be the managing director.

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