Towergate Insurance Brokers announced it has exchanged contracts to purchase the corporate retail book of business from AFL Insurance Brokers, which includes a team of 13. This deal comes on the heels of last week’s announcement that a team of 16 was moving from AFL to UK broker, Specialist Risk Group.
Last week’s AFL move — a team hire, rather than an acquisition — comprises 16 specialists in U.S., Canadian and Australian wholesale, binding authorities and London market facultative reinsurance.
The question is: what will be left for AFL Insurance going forward, and is it ceasing to do business? A spokesperson for AFL said: “AFL remains solvent and would like to reassure the market that the business will continue as a going concern for as long as it takes to fulfill our responsibilities to our clients and partners.”
AFL further commented in a later statement: “We have been delighted with the growth of AFL over the last three years, and feel that the natural next step for our talented retail and wholesale teams is to continue the path of progress for our clients with separate, dedicated brokers for these specialisms. These developments are taking place with the full support of our shareholders and clients.”
In Towergate’s announcement today, the London-based broker said that the 13-member retail team, led by Managing Director Mike Almond, will join Towergate’s global broking practice upon completion.
AFL’s corporate book represents £8 million in gross written premiums and counts several U.S. Fortune 100 companies in its client base, according to Towergate.
The acquisition will mark the coming together of international expertise which will be backed by Towergate’s Worldwide Broker Network membership, strengthening its position as the independent broker of choice for international counterparts looking to place complex risks for clients with UK operations, said Towergate.
“After talking to the retail team for some time, we’ll be delighted to welcome Mike and the team of global broking experts into Towergate and our existing international offering. We have long admired their skillset, knowledge and quality relationships they have developed as WBN members,” commented Tony O’Gara, Towergate’s director of Client Services, in the statement.
“Upon completion, we will have a unique opportunity to leverage the expertise across our business with the strength of the Towergate brand, and enhance the services we can deliver to both new and existing international clients within Towergate, but also within the wider Ardonagh Group.”
“I and the rest of the team are really excited about the opportunities and resources we will tap into as part of Towergate upon completion,” said Almond. “Our proposition to clients will be further strengthened by access to Towergate’s risk management, credit and employee benefits teams, as well the negotiating strength than comes with being part of the wider Ardonagh Group.”
Topics Mergers & Acquisitions
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