The brokers survey
O
nce again our survey of London and Lloyd’s market brokers showed a number of businesses that have enjoyed strong growth, with much of the growth between 2008 and 2010
being driven by consolidation rather than organic factors. The market has witnessed some sizable deals in recent years and the results of this survey are indicative of this fact, with the Cooper Gay and Swett & Crawford (completed in July 2010) and Arthur J. Gallagher International and Heath Lambert (completed in early 2011) mergers creating market leaders in our London market broker table.
The 2010 results provided by management for the merged entities show Cooper Gay’s turnover increased by 119 percent to £220.0 million from £100.5 million in 2009, as a result of Cooper Gay’s combination with the US wholesale broker Swett & Crawford. The results for Gallagher International were provided by management on a merged basis for the three year period, and showed healthy organic turnover growth of 16 percent, from £162.2 million in 2009 to £187.7 million in 2010.
FY10 Entity name Cooper Gay Swett & Crawford *
Period End 31 Dec
Dec-10
Gallagher International (including Heath Lambert) * Dec-10 Lockton Companies LLP * Miller Insurance Services Ltd * Hyperion Insurance Group Ltd * R K Harrison Holdings Ltd *
Lloyd & Partners (a JLT Group Company) BMS Associates Ltd * THB Group PLC
RFIB Holdings Ltd * Price Forbes (PFIH Ltd) *
Towers Watson (Re)Insurance Brokers Ltd UIB Holdings (UK) Ltd Tyser & Co Ltd * Windsor Ltd *
Newman Martin and Buchan LLP Besso Holdings Ltd Lonmar Global Risks AHJ Holdings Ltd * Oxygen Holdings Plc
Apr-11 Apr-11 Sep-10 Jun-10 Dec-10 Dec-10 Oct-10 Jun-10 Dec-10 Jun-10 Dec-10 Dec-10 Dec-10 Mar-11 Dec-10 Dec-10 Dec-10 Dec-10
TURNOVER £000 (COMMISSION & FEES) FY10
219,979 187,752 100,592 83,529 74,735 67,234 55,799 50,200 48,389 43,266 40,501 38,627 36,097 34,232 32,838 27,144
FY09
100,472 162,241 99,462 76,864 56,600 59,156 48,868 46,924 46,237 36,730 35,748
17,681 17,016
33,321 33,465 28,679 27,456 27,946 21,432 18,975 17,995
FY08 77,885
153,509 95,494 67,679 46,656 45,233 41,975 42,629 34,599 31,022 30,822 30,256 27,393 26,829 27,646 15,309 28,306 20,403 15,743 15,282
Significant growth was also reported by Hyperion Insurance Group,
which posted a revenue increase of 31.5 percent, while R K Harrison Holdings, Lloyd & Partners (a JLT Group company), RFIB Holdings, Price Forbes and Windsor all posted growth of between 13 percent and 18 percent between 2009 and 2010.
Cooper Gay and Swett & Crawford combined forces in July 2010 in a
deal that created a global group that will place approximately $3.5 billion in premiums in the US, London and other global markets, and employ over 1,500 staff.
Gallagher International acquired Heath Lambert in a £97 million deal
in May this year. Although Arthur J. Gallagher & Co, the US parent company, had previously made a number of acquisitions in the US, including Gleason Agency, Risk Planners and Blue Water Benefits, Heath Lambert was the largest ever acquisition by the US parent. It was also significant because of the enhanced footprint it now gives the company in the UK brokerage market.
OPERATING PROFIT / (LOSS) £000 FY10
39,836 29,847
5,376
11,270 15,001 13,304 1,308 3,331 3,449 3,823
10,504 1,565 3,481
10,317 2,027
FY09
19,364 24,309 6,941 7,151 7,235
12,966 8,052 461
3,262 2,959 3,483
4,000 3,223 8,691 3,561 1,177 -29
705 -3,480
2,021 -1,122
FY08
17,600 19,871 -238
6,507 5,982
12,069 6,754 1,372 1,722 3,635 2,226 3,861 3,653 2,124 8,179 2,206 1,518 1,403 794
-2,246
AVERAGE NO. OF EMPLOYEES FY10
1,420 1,867 713 503 617 478 227 267 442 308 210 173 321 202 208 151
FY09 661
1,656 716 476 448 460 219 267 463 315 191
99 184
302 201 194 151 214 161 96
184 FY08 538
1,757 747 448 383 335 190 296 386 297 186 177 274 188 192 124 262 172 94
177
Source: Analysis of published financial information (except as below) * Results based on management information and analysis and unpublished financial information ** Adjustments to present data on a more consistent basis included: presenting results on a 12 month pro rata basis where accounting periods exceeded 12 months, excluding discontinued operations, reclassification of items including interest income as investment income and exclusion of exceptional items from operating profit.
56 | INTELLIGENT INSURER | September 2011
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