Paul Anscombe: Seventeen Group’s independence means culture is the ‘number one priority’

Paul Anscombe, chief executive at independent insurance organisation Seventeen Group, is a man with well-defined priorities. Whether this be supporting his career choices or how he has moulded his firm, Anscombe has always had an emphasis on “rolling up the sleeves and really throwing myself into something”. 

This ethos has supported the creation of one of the UK’s largest independent insurance firms – Seventeen Group was listed in the most recent Insurance Times Top 50 Brokers research report, published in November 2023, as one of the market’s high flyers.

Anscombe began his career in insurance at Norwich Union in 1981, having left his previous role as a stock broker because he noted that when his friends over in Fenchurch Street introduced him to the insurance sector, it “just seemed incredibly nice and positive, with a desire to do things”. 

After stints at brokers Alfred Blackmore and Frizzell, he was made managing director of a business called Hanover at just ”28 years of age, with no management training or prior experience”. 

Via various acquisitions, Hanover eventually ended up as Lark – which itself became Aston Lark in 2018 before morphing into Howden Commercial in 2023 – where Anscombe became a director in 2000.

Shortly after in 2004, however, Anscombe joined Seventeen Group broker James Hallam, where he has remained ever since. 

He says: ”[The owners] wanted to grow James Hallam and needed some help, so I threw myself into it and I’m still here 20 years later, with the business having developed considerably.”

Headroom for growth

The development of Seventeen Group from when Anscombe first joined the business has comprised of a mix of both organic growth and a targeted M&A strategy.

”I’ve always enjoyed being part of something that’s growing and I’ve enjoyed taking something and building it so that I’m part of that growth story.”

While James Hallam remains the most significant part of the group, the intermediary organisation also owns MGA Touchstone Underwriting, Isle of Man focused Kestrel Insurance and operates a joint venture with Germany-based Lloyd’s broker London Re. 

Crucially, according to Anscombe, what underlines all of this development is the independent character of the overarching business, with all the advantages and challenges that come with this. 

He explains: ”There’s something about the independent space that makes me like the culture – the openess, the collegiate spirit and the fact that client relationships are so dependent on the execs. We can’t just use our brand to muscle in on new clients – we have to go and win them the hard way and that’s how I like it.

”I’ve always enjoyed being part of something that’s growing and I’ve enjoyed taking something and building it so that I’m part of that growth story.

”This is no criticism of global brokers, but that space was never appealing to me because those are already highly successful businesses. With a smaller firm, like James Hallam was at the time I joined, you’ve got headroom to take the business where you want to take it.”

M&A strategy

While Anscombe is keen to emphasise that Seventeen Group’s M&A strategy “is not the only thing we’re about”, the number of purchases it has made in recent times has been considerable – especially when taking into account the lack of external financial backing. 

In 2024 so far, it has bought Keith Miller Services, Hendricks Insurance, Jannard Quadrant, Wiseman Insurance Services, North West Risk Solutions, East Pennine Insurance Consultants (Epic) and Gen2 Group. 

Commenting on the shopping spree this year, Anscombe tells Insurance Times: “If anything, I’d like [M&A] to slow down slightly. We’ve completed seven [deals] and will probably complete at least three more by year-end, which is a big number for us.

“Going forward, I’d like us to make a few less acquisitions of slightly larger businesses, which would work very well for us.” 

That is not to say, however, that there is not careful planning and strategic rationale behind Seventeen Group’s purchases so far – far from it.

Anscombe explains that the business operates strongly in the regions across the UK, where some of its larger competitors are not as robust and where the need for “cultural fit” is high. 

He says: ”There’s some great regional opportunities for the future in some sizeable towns around the UK where there’s almost no direct insurer presence and a reduced amount of broker presence because of consolidation.

”We had a massive gap between the south and Scotland, so with the Gen2 acquisition we now have a presence in the Midlands. With other opportunities in that region, it could be an exciting space for us. In Yorkshire too, with the Epic acquisition, that’s given us a presence in Sheffield.” 

However, Seventeen Group will not invest in just any broker simply because it occupies a strategic target geography for the firm. Anscombe says that culture “in the broking space is absolutely the number one priority”. 

He explains: ”We always say to every executive that joins us ’you are king, as long as you’re dealing with insurers [that] are on our acceptance criteria, do what’s in the best interest of the client’.

”We’re very clear when we acquire that we try to integrate as quickly as possible and techology is a key driver of the timing of that. But, when we bring people into the group, they’ve still got that freedom and independence to behave in the way they were behaving before, just in a bigger firm with more things to offer.

“That means that, during initial conversations, if the seller is an older person who just wants to retire and get their money and there’s no one else there that is ambitious to grow the business, then that would not be a good acquisition for us.” 

Culture of innovation

Anscombe’s desire to slow down the pace of M&A at Seventeen Group is influenced by a belief in the importance of creating a specific culture at the independent broker, which is supported by a healthy balance of organic growth.

He explains: “We have a long history of buying businesses and what M&A does, if you retain the staff, is immediately give you a hit of growth with very little risk. With organic growth, there’s more risk involved – it can take longer, but if you weren’t doing it, then the culture of the business would be very different.

“We could have stratospheric growth and historic profit next year if we cut costs and didn’t invest – it could look spectacular for a year or two. But what would [Seventeen Group] look like in three years if we did that?”

“We’d just be seen as a bolt-on and build type of broker and that’s not particularly interesting or strategic – in our case, we can evidence that sort of strategic initiative as a firm regardless of M&A, so that organic growth is key to us.” 

One example of this is the cyber and technology hub James Hallam built at Exeter Science Park in August 2024. The broker has also assembled a specialist team to focus on cyber and technology risks that can support firms across Seventeen Group. 

Another example is Touchstone Underwriting, which was created 15 years ago as a “solution for SME business”, but has now grown to write around £50m in gross written premium, mostly in specialist lines or regional areas, with 75% of its user brokers coming from organisations outside of Seventeen Group.

Organic growth is also vital to Anscombe because Seventeen Group “is not for sale, so needs to grow steadily”.

Anscombe explains: ”We’ve constantly got to invest in the business, whether thats human resources, information technology or data, because it’s good for the long term. This isn’t a business that’s going to be around for five minutes and then disappear.”

This investment need is magnified by the independent nature of the business, which necessitates a focus on “steady, good growth that is appropriate for [the] style of business” Seventeen Group is.

Anscombe adds: “We could have stratospheric growth and historic profit next year if we cut costs and didn’t invest – it could look spectacular for a year or two. But what would [Seventeen Group] look like in three or four years if we did that?

“Our growth is accelerating slightly looking forward, but what we want is that stability of growth.”