Swinton plans move into commercial ........ while HHH follows suit

Swinton plans move into commercial ....

Motor specialist Swinton will open a commercial unit to concentrate on small-to-medium enterprise (SME) business.

Director Peter Halpin said Swinton would also acquire a number of commercial brokers as part of its push into the market.

"We saw the opportunity to move into the SME package end of the commercial market so we plan to set up a commercial unit at our Manchester headquarters," he said.

"We insure the cars, homes and small white vans of a number of our customers, but not their other commercial activities. So we decided to get involved."

Halpin said Swinton would launch the commercial unit later this year and had already started recruiting staff with commercial experience.

He said Swinton's existing panel would underwrite the business.

Halpin said Swinton was an active acquirer of personal lines brokers and would take a similar tack when it moved into commercial lines.

"We haven't looked at the commercial side yet but, when we develop enough experience, we'll start looking to acquire," he said.

He said the new unit would target existing customers who owned businesses and new customers.

Swinton, established in 1957, has 260 branches across the UK.

It has £240m annual gross premium income.

This week Churchill managing director John O'Roarke revealed that the direct writer was in talks with Swinton to join its motor panel.

O'Roarke said a deal with Swinton would be the first of several in a bid to sell Churchill motor policies through high street brokers.

.... while HHH follows suit

Hill House Hammond (HHH) has launched a business insurance operation after tough market conditions took their toll on the broker's results.

Managing director Eric Galbraith said the need to discount rates in order to keep customers lay behind the decline in operating profits from £12m in 2000 to £4m in 2001.

But he said: "Considering the market we've been in, it's a strong performance."

He was speaking after launching a commercial lines insurance operation with a target to grow from its current level of £36m of premium income to £50m by the end of the year and reach £100m by 2004.

He forecast that overall, it was not realistic to expect the group to achieve an operating profit close to 2000's level next year.

He said: "2002 is going to be about consolidating and growing."

HHH will launch new products and invest both in IT and its branches. The group aims to have 12 business insurance centres by the end of the year. Its target market for commercial lines is in the £10,000 to £60,000 premium bracket.