Biggest deal yet for Broker Network
Broker Network has made its biggest acquisition to date with the purchase of Towry Law Insurance Brokers (TLIB) from JS&P Finance.
The acquisition, for £12.5m, was made in conjunction with a consortium of Towry Law's management team, led by managing director Martin Wright, who take a 25% share of the business.
Towry Law controls more than £50m of premiums.
Broker Network did not rule out further acquisition on a similar scale in the future. Michael Collins, deputy chief executive told Insurance Times: "It is a substantial deal, but by no means a one-off [in terms of size]."
Broker Network's acquisitions have mostly been of brokers under £10m premium income.
Broker Network chief executive Grant Ellis said: "This is a very significant development for Broker Network and demonstrates the rapidly growing strength of the group. Towry Law is a superb business, with a great team. Membership of Broker Network brings substantial additional benefits, even to a firm of its size."
Wright said the sale would provide more freedom to develop the business. "We are going to have the autonomy to develop our general insurance and healthcare business in partnership with Broker Network, while having a continuing relationship with Towry Law to look after and develop our mutual clients."
He said Towry Law would need to rebrand, although the new name had yet to be decided. It would also need to look for new office space as it currently shares with the other Towry Law Group businesses.
TLIB will become a member of Broker Network and all staff will transfer.
The sale of TLIB, the general insurance and healthcare arm of Towry Law JS&P Group (TLG), comes less than a month after JS&P acquired Towry Law Group from Henderson Group for £37m.
Towry Law JS&P Group said TLIB had been sold as it did not fit with the group's core IFA and wealth management business.
Andrew Fisher, chairman and chief executive of Towry Law JS&P Group, said: "We are moving towards being totally fee based...which is less relevant currently to the general insurance market."
