New Towergate chair speaks out

The search is on for a replacement for Towergate chief executive Andy Homer, the broker’s new chairman Alastair Lyons has confirmed.

In his first interview since the announcement of his new role, Lyons said Towergate was looking at internal and external candidates. He said that while the board had considering looking outside the industry, that was unlikely given the complexities of the insurance business.

He emphasised that there was no timetable in place, and Homer was happy to stay until the right successor could be found. Asked if that would be this year, he replied: “It could well be, but equally it doesn’t need to be.”

Cullum’s new role

Lyons, who is also chair of motor insurer Admiral, takes over the chairmanship from Towergate’s founder, Peter Cullum, now deputy chair. The move was exclusively predicted by Insurance Times in February. Cullum will be hands-on with group businesses CCV and Powerplace, and remains the largest individual shareholder in Towergate.

Lyons said: “Any business comes to a stage in its development where there’s a recognition that the board structure changes.”

Who’s in charge?

Asked who would have the final say on decisions governing Towergate’s future, he said: “In any board, the board itself makes the decision, it’s the role of the chairman to ensure it has an effective decision making process and there’s an appropriate debate. Ultimately decisions are governed by the investment agreement between Peter and the other equity shareholders in the business.”

Lyons will be non executive chairman, while Cullum was chairman. Explaining the scope of his role, Lyons said: “It’s the role of the chief executive to run the company, put up a strategy to the board for its agreement then go ahead and implement it. As non executive chairman my role effectively is to run the board, while the chief executive runs the company.”

He expects to work one to one and a half days a week for the consolidator.

The road to flotation

He acknowledged that the flotation of the business was a likely though by no means certain possibility, but declined to set out a timetable. “Most private equity deals last three to five years,” he said. Private equity house Advent took a 200m stake in Towergate earlier this year.