David Ross opens up on Ardonagh

What does the arrival of Ardonagh mean for the UK insurance industry?

It has to be a good thing. Because of the streamlining of consolidation, the choice for both customers and employees has become limited, especially where it comes to the multinationals, where you get big strong balance sheets but not much else. To be able to provide a platform for entrepreneurial thinkers and clients who don’t want to become commoditised is crucial for our industry. That’s why we like the work being done by people like Brendan McManus and Peter Blanc and we applaud it.

How can strong consumer brands and independent businesses work alongside each other and still benefit from being part of the group?

Because the group identity and name is market- and investor-facing and the consumer brands are consumer-focused. The group brings massive buying power and significant clout to navigate any obstacle and ultimately, lead to a better deal for the customer.

The balance is in creating an environment where consumer brands can interact with each other without diluting their own value.

If you take Ian Donaldson and Craig Ball as examples; they run Autonet but they know who to call to optimise the performance of their business. Last month, the acquisition of Carole Nash was a significant team effort where Ardonagh played a huge role in helping those guys to make that happen.

Can brokers be owned by insurers or is that model over now?

I would argue they never could have been and they can’t now. The broker works for the client and the carrier works for the carrier; the two can’t mix. In my opinion, the model was a panic attack by the industry to try and stop the consolidators becoming too powerful.

What do you think 2018 will bring for M&A in the market?

The multinationals will be what they will be. The private independent platforms will continue to be the news-worthy businesses in the market. If you look at the US; Brown & Brown, HUB International, USI, AssuredPartners - a host of scalable independent platforms - we’ve got to stimulate that kind of investment in this market place as our clients need it. And employees won’t work for a company that doesn’t care about them.

What would you do differently if you could redo 2017?

I would make the year longer so we could do more of what we’ve done.

As headline sponsor of the Insurance Times Awards, why do you believe it is important for peers and competitors to group together and celebrate success?

We are an incredibly noble industry. When the world goes upside down, we put it back together, collectively. One of the things I love about it is that we knock lumps out of each other during the day and then have a beer together at night. The day we lose the ability to do that is a sad day for all of us!

What award would you give to your employees?

The Resilience Award. Few people have been tested more than the people of Towergate over the past few years and then come out the other side. For a very long time they made the headlines for all the wrong reasons. The turnaround is nothing short of miraculous and a tribute to them all. Ardonagh would not have been a possibility if they hadn’t stuck it out for their clients. Our new colleagues across the group have graciously and eagerly embraced the opportunity and the ethos. We couldn’t be prouder of how these brands and businesses have come together in the spirit of collaboration.

And in celebration of awards season, a few of my awards for 2017:

Deal of the Year: Aside from the formation of The Ardonagh Group? I would give points to Aon for purchasing Hendersons. It’s a strong regional play and the market have been dancing around that deal for years.

The Collaboration Award: We heard about, saw and supported many businesses within the industry in the aftermath of the Manchester Evening News terror attack who were directly impacted, including our own employees. Across the industry, we pulled together and stood by collective causes. It was perfectly fitting and it was truly humbling.

The “One to Watch” Award: Rob Worrell in his new role as chief executive of insurance broking at The Ardonagh Group. Also, Jon Hancock: having been in his Lloyd’s role for twelve months now, he’s doing great things.

The RIP Award: The phrases “Towergate: the troubled broker”, “struggling consolidator Towergate”, “the broken broker”. We’ve moved through the fix and our people felt it first, with the market following closely behind. Within Ardonagh, Towergate is playing to its strengths and is rightfully returned to kingpin status.