Insurance Broker Consolidators dominate Insurance Times Top 50, 2011

With publication to day of the Insurance Times Top 50 Brokers today, we see AON sitting on top followed by JLT, Marsh, Willis, SAGA, then Towergate and Swinton in 7th and 8th places. Bluefin makes 11th, Oval  14th, Giles 18th, Jelf 20th and CCV 24th.   

I highlight Towergate, Swinton, Bluefin, Oval, Giles, Jelf and CCV as they are "The Consolidators" who have built and grown businesses through acquisition in the UK market - and they are the businesses which continue to have the biggest impact on the UK broker market.  (I am not ignoring the fact that AON, JLT, Marsh, Will etc haven't done this to - but the scale and focus of their activities is different).  Groovy graphics supplied in the supplement suggest that the biggest concentration of M&A activity was in 2006 to 2008 - and Towergate accounts for roughly half of all M&A activity.  Quite an achievement - and testament to the fact that they are still the most attractive home for brokers seeking to sell.  With the addition of CCV in recent years, the consolidator looks set to retain this position in 2012.

In terms of "Commercial Insurance" by which I assume Insurance Times means UK Commercial, these 7 are the top players (with the addition of Brightside which doesn't quite fit the consolidator model).  Which just goes to show how tough this sector of the market is and how hard fought the Insurance Broker Acquisitions arena is.

Perhaps it is just me, but comparing UK-only brokers with the UK operations of international brokers and comparing non-Lloyd's brokers with Lloyd's brokers does seem slightly strange as the market-places and dynamics are entirely different.  Can you really compare Cooper Gay with it's international reach and global office network with Towergate?  Adrian Flux with UIB? Never mind JLT with Allen & Allen?  I can't help feeling that making use of the accepted differentiations within the broker market might make this a more meaningful survey.  Again, maybe it's just me.

As for the CEOs - some great pictures in there: the gritty, smirk of Joe Henderson contrasts with the traditional City shots of David Howden and Julian James; the proud achievement glowing on the faces of Cullum and Homer; the challenging stare of Brendan McManus; and the boyish charm of Neil Utley.  Not a woman in sight by the way.

The survey is certainly interesting, though perhaps it exists more for its own sake than as a true measure / analysis of the broker market.  On the positive side, it recognises the achievement and success of those organisations meeting the criteria to be included - particularly at the lower end.  And I for one would one day like to see my business creeping slowly up the list.