UK broking group strengthens its operations following AIM flotation
Cobra Holdings, the UK-based retail and wholesale insurance broking group, has acquird Tubbsd Insurance Services.
Tubbs, a commercial broker based in West Byfleet, controls around £4.5m of gross written premium (GWP).
The acquisition of Tubbs was in negotiation prior to Cobra's admission to AIM and following the completion will be integrated with an earlier acquisition, KW Batten (Insurance Consultants).
KW Batten, was also a Cobra network member, with a Farnham-based operation controlling nearly £2m of GWP. Both businesses will be run by the Tubbs management team.
Neil Carter, managing director of Tubbs, said: "We have been a member of the Cobra network for several years and as a company, we appreciate the advantages this brought us.
"Having now been acquired by Cobra Holdings, we look forward to growing our company within this larger organisation and being able to utilise to the full all its resources. This will, undoubtedly, benefit our clients who will have access to an even wider insurance market.”
The acquisitions form part of Cobra’s 'hub and spoke' strategy, which is based on the establishment of regional brokers, linked with smaller independent firms within their catchment area.
The smaller firms will be either integrated in to the hub or managed remotely as satellite offices or 'spokes'.
Tubbs and KW Batten will combine to create a local hub to Tubbs' operation in Caterham. The combined operation is expected to add in excess of £1m of revenue to the group.
The combined entity will trade as Cobra Tubbs Batten and the operation will continue to be based in West Byfleet.
Phil Truman, director with responsibility for acquisitions at Cobra Holdings, added: “Both acquisitions are an excellent demonstration of our 'hub and spoke' strategy in action.
"In negotiating these transactions we understood the importance of taking into account succession within the business for senior management.
“The acquisition of Tubbs is the first we have completed since joining AIM in June and we continue to evaluate other opportunities in line with our strategy.”
