Welsh broker Moorhouse aims for £100m in GWP in two years. Will it succeed?
Ambitious growth plans released by Welsh broker Moorhouse would see the business grow its gross written premiums threefold to £100m by 2010.
The independent broker has seen its premium income rise at an exceptional rate in recent years, and is now ready for a staggering organic growth push to rival that of the markets biggest consolidators.
Most brokers strive for organic growth, but the scale of Moorhouse’s intentions will have raised eyebrows in the market as to just how sustainable its targets can be.
Described as a ‘hypergrowth’ strategy, its first target is to add £35m of GWP this year, leaving the business with £60m GWP by the end of 2008. Such increase would see the company triple the amount of new business it received last year.
It is also set to recruit an additional 85 staff in a range of administrative, sales and underwriting roles, almost doubling the total number of staff to 190.
A smart move, as the business will receive £0.5m from the Welsh Assembly for creating over 65 new jobs, as part of its economic development remit.
The project will also see a £2.3m investment in the business this year, with a further £6.5m expected to be invested over the next three years.
Last year the company increased its GWP by 35%, and chairman Lyndon Wood is confident that through organic growth the broker can better itself.
He said: “Our main aim is to write £35m of premium this year via organic growth and I don’t think there is a broker in the land that has the same aspirations. We will continue to do what we do now, just bigger.”
Wood added that he is looking to make a statement that they “can grow organically” and said he doesn’t understand any company not going down the same route.
In June 2005, Moorhouse revealed it had created a £5m war chest for an “aggressive acquisition programme” and in February 2006 it acquired Shakespeare Underwriting, its only purchase to date.
However, Wood has not ruled out further acquisitions to boost the business. He added: “We may decide to approach one or two firms or we may not. It is wherever the wind takes us really.”
We shall see by the end of the year if stage one of Wood’s go-getter approach has been organically fruitful or not.
