Gallagher Heath name for the chop as Deakin turns broker

The Heath name will be consigned to insurance history books after Arthur J Gallagher revealed plans to drop the brand, alongside Gallagher London, in an effort to bring its divisions closer together.

The move was announced by new commercial director Janice Deakin today as 650 staff from the broking giant began a move into the Walbrook building in Cannon Street.

Deakin – who will oversee acquisitions, sales, marketing, e-trading and internal communications – said: “I think we’ve created a framework for clarity around the brand as we grow and acquire more businesses.”

Sales and marketing functions need to grow and be invested in to match the scale of the business, she added.

Reporting into her are: M&A director Mark Armitage, e-trading director Vivek Banga, marketing analytics director Paul Emuss and Debbie Durkan, who was recently promoted to strategic sales and marketing director.

One name

The “master brand” strategy was developed by John Kitson, who was hired as a marketing consultant by UK chief executive David Ross in April.

“It will help with client communications, relationships, and clarity to the outside world. It helps to navigate the myriad of different ways of trading online and offline,” Kitson said.

“There’s one name, and it’s Arthur J Gallagher. A brand that is acquired will have to go some to prove that it’s a brand in its own right that can sit alongside Arthur J Gallagher.”

Alesco, Gallagher’s specialist energy broker, will keep its name, and the company has yet to decide which names, if any, from the Barbon acquisition will stay.

“Hybrid names like Gallagher Heath are being phased out. It was right a couple of years ago but it’s no longer appropriate,” he said.

Starting today, clients will be informed of the new name when they renew their policies. “There’s no big bang. There’s no Arthur J Gallagher going on Chelsea football shirts or anything like that,” Kitson added. The transition will take about 18 months.

Deakin said improved communications between the different parts of the business would help Gallagher sell more products to existing clients. “From my perspective it’s ‘if a client is buying this much insurance, how much of it do they buy from us?’,” she said.

“We have personal lines customers with second homes, that don’t buy second home insurance from us. Connecting those lines is just one small area where there’s opportunity,” she said.

Gallagher Heath was created when Arthur J Gallagher bought Lloyd’s broker Heath Lambert in 2011. Heath Lambert evolved from CE Heath, an insurace brokerage founded by Lloyd’s underwriter Cuthbert Heath in 1877.

Acquisitions

Setting out Gallagher’s stall for potential takeover targets, she said: “Why wouldn’t you want to come here? It’s a long term home in a business that’s growing, that has no barriers, that cares about people.

“If you’re acquired by Arthur J Gallagher you’ve found your home. We buy, we don’t sell. We’re not up for an IPO or anything else. If you sell here, you’re joining for the long term.”

Deakin refused to comment on how many takeover talks she is involved in with brokers, and insisted she does not have a numerical target. “There are lots of parts of the UK market that we’re only scratching the surface of. The thinking is not constrained by ‘we want to do this many’.”

Deakin also declined to comment on Gallagher’s reportedly exclusive talks to buy fellow consolidator Giles or where its chief executive Brendan McManus could sit in the organisation. “Things remain market speculation until they’re confirmed. I’m not going to get into that conversation,” she said.

Six weeks into her role Deakin said she is happy with Gallagher’s fast pace. “Nobody’s ever satisfied with where we are, and that’s very healthy.”

“Normally you have to prove yourself a bit when you join a business but there’s been none of that. It’s been ‘great, you’re here, get on with that,” she said.

Aviva ties

Asked if she still thought her former employer Aviva was still number one for brokers, Deakin said: “They’re one of the best teams in the market. They’re people I worked with for a long time. I love them and I want them to succeed. They’ve got a lot to get through but I wish them the very best and I’ll always have a loyalty.”