We believe that the business of insurance broking is fundamentally straightforward. The role of the broker is to understand the client’s requirements, obtain the best terms it can from insurers and deal in a professional, prompt and friendly manner with its trading partners on both sides of the transaction.
We believe that the interests of the broker, its staff and its clients should be aligned. To best do this, the ownership of the business should primarily be with those who work in it and contribute to its growth and success. We have therefore set the business up as a Limited Liability Partnership (‘LLP’), which gives the flexibility to align contribution with equity. You can only grow an independent broker, which cannot rely on business being gifted to it from other group offices, by delivering what your clients want. Hence alignment of interest.
In our view, brokers with venture capital type investors can be short term in outlook, focussing on the next quarter’s numbers, IRR’s and adjusted EBITDA. This leads to regular restructurings and cost-cutting, shifting the focus away from client service. We don’t think such investors are a natural fit with wholesale insurance brokers who are subject to external influences such as fluctuations in rates of exchange and the hard/soft market cycle. A broker needs to be able to see beyond short term results and be able to take a longer term view. We are therefore not currently seeking outside investment. And if we do so in the future to support our growth, it will be from a partner who understands our business and is not looking to make a short term turn on the investment.
We believe there is a space in the market for a back to basics broker, offering personal, transparent service.