Daily briefing: Monday

Welcome to our first InsuranceTimes.co.uk Daily Briefing. Each day, we’ll give you our picks of the top stories, alongside our own informed commentary. Also, keep an eye out for the Weekly Briefing, every Thursday.

We’ve made some exciting changes to the Insurance Times website. Our Insight section will bring you analysis and reaction to the big events shaping the market. We’ve launched IT Investigates, where we aim to explore the sensitive market issues and answer those burning questions. We’ve kicked off with The untold story of RSA's bid for Aviva and looked closely at the loans given by insurers to brokers. In IT People, you can read our interviews with the market leaders, online first. And finally, Inside Broking where we get to grips with the nuts and bolts of the broker market, beginning with a series of “broker briefings” with the need-to-know facts on regional players.

Today’s briefing

The poaching season is well and truly underway. Senior sources in the broker market have told me to expect a higher than normal number of team moves in 2011 and this is starting to ring true.

We revealed on Friday that the ambitious Gallagher International was making its latest foray in the London market. It is set to swoop on Lonmar director Tom Payne, who resigned last week. We also understand that a number of directors from the PI team will follow. It's a busy time for Gallagher, which is also ironing out its deal to buy Heath Lambert.

On the opposite side, its testing times for Lonmar, which gave no comment. Its chief executive Simon Rice has a lot on his plate, fresh from losing a bitter court battle with London market rival Tysers, which could cost it around £1m.

Scotland on the radar

However don’t expect to see such poaching activity concentrated solely on the London market; it’s happening out in the regions too. This morning, Towergate pulled no punches as it announced a raid on Heath Lambert. The private-equity backed consolidator has aggressive plans in Scotland and today snapped up a team of four from Heath’s in Aberdeen. Last year Towergate merged five of Scottish businesses in Glasgow and now has a new regional head in Kenny Hogg.

It’s an interesting time in Scotland. Brokers such as George Stubbs, famous for making a bold move when taking staff from Giles last year, are boisterous in their bids for growth. Don’t take your eyes off it.

The reason why brokers are targeting teams over businesses is simple; it’s cheaper, quicker and easier to integrate. At a time when consolidation has slowed and acquisition funding pots are near empty, the poachers are out hunting. Targeting teams requires a certain level of bravery, too. It comes with the obvious barriers such as restrictive covenant agreements, but as the market knows only too well, these don’t last forever.

It’s also worth pointing out the new role handed to Towergate’s former Scotland regional managing director, Alan McEwan. He’s become acquisitions and projects director and it comes exactly one month after Towergate appointed Stephen Hinbest to take charge of its £90m acquisition war chest from Advent. It appears they could be preparing for something quite big.

Admiral afloat

The good-ship Admiral also continues to make waves. Analysts are predicting the motor insurer’s market share could increase around 4% to 14% by 2014. But with increased market share comes a heightened threat of exposure to its impressive underwriting record. How long can it keep it up?

Danny Walkinshaw, digital news editor, Insurance Times.

Email: danny.walkinshaw@insurancetimes.co.uk